Presented below is an incomplete income statement and incomplete comparative statements of financial position of Bondi ASA.

BONDI ASA

Income Statement

For the Year Ended December 31, 2017

Net sales ...................................... €10,500,000

Cost of goods sold ...................................?

Gross profit .......................................... ?

Operating expenses ........................... 1,500,000

Income from operations ........................... ?

Interest expense .................................... ?

Income before income taxes ...................... ?

Income tax expense ............................ 550,000

Net income .................................... € ... ?

BONDI ASA

Statements of Financial Position

December 31

Additional information:
1. The accounts receivable turnover for 2017 is 8 times.
2. All sales are on account.
3. The profit margin for 2017 is 14.5%.
4. Return on assets is 20% for 2017.
5. The current ratio on December 31, 2017, is 2.5.
6. The inventory turnover for 2017 is 4.9 times.
Instructions
Compute the missing information given the ratios above. Show computations. (Start with one ratio and derive as much information as possible from it before trying another ratio. List all missing amounts under the ratio used to find the information.)

Transcribed Image Text:

Assets Plant assets (net) Current assets 2017 2016 4,620,000 4,355,000 1,720,000 1,050,000 375,000 3,145,000 7,500,000 Inventory Accounts receivable (net) Cash 480,000 Total current assets Total assets quity and Liabilities Share capital-ordinary, 1 par Retained earnings 2017 3,000,000 2016 3,000,000 375,000 3,375,000 3,300,000 825,000 4,125,000 7,500,000 400,000 Total equity 3,400,000 Long-term notes payabl Current liabilities Total liabilities Total equity and liabilities