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

Additional information: 

1. The gross profit margin is 40%. 

2. The income tax rate is 20%. 

3. The inventory turnover is 8 times. 

4. The current ratio is 3:1. 

5. The asset turnover is 1.5 times. 

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. 

Why is it not possible to calculate the missing amounts in the same sequence (i.e., (a), (b), (c), etc.) in which they are presented above?

Transcribed Image Text:

SCHWENKE CORPORATION Income Statement Year Ended December 31, 2024 Net sales Cost of goods sold Gross profit Operating expenses Profit from operations Interest expense Profit before income tax Income tax expense Profit for the year (a) (b) (c) 333,750 (d) 10,500 (e) $ $124,600