Presented here are an incomplete income statement and balance sheet for Vieux Corporation.

Additional information:
1. The gross profit margin is 40%.
2. The profit margin is 15%.
3. The receivables turnover is 10 times and all sales are on account.
4. The inventory turnover is 8 times.
5. The current ratio is 2:1.
6. There turn on assets is 22%.
Instructions
Calculate the missing information using the ratios. Use ending balances instead of average balances, where averages are required for ratio calculations. Show your calculations.
TAKING IT FURTHER
Why is it not possible to calculate the missing amounts in the same sequence (i.e., (a), (b), (c), etc.) that they are presented above?

Transcribed Image Text:

VIEUX CORPORATION Income Statement Year Ended December 31,2017 Net sales Cost of goods sold Gross profit Operating expenses Profit from operations Interest expense Profit before income taxes Income tax expense Profit $11,000,000 1,600,000 707,000 VIEUX CORPORATION Balance Sheet December 31, 2017 Current assets Accounts receivable Total current assets Long-term investments Property, plant, and equipment 430,000 4,420,000 Current liabilities Non-current liabilities Total liabilities Common shares 1,500,000 1,900,000 3,400,000 Total shareholders' equity Total liabilities and shareholders' equity