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

Additional information:
1. The accounts receivable turnover for 2020 is 8 times.
2. All sales are on account.
3. The profit margin for 2020 is 14.5%.
4. Return on assets is 20% for 2020.
5. The current ratio on December 31, 2020, is 2.5.
6. The inventory turnover for 2020 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:

Bondi ASA Income Statement For the Year Ended December 31, 2020 €10,500,000 Net sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense 1,500,000 Income before income taxes Income tax expense 550,000 € ? Net income Bondi ASA Statements of Financial Position December 31 Assets 2020 2019 Plant assets (net) €4,620,000 €4,355,000 Current assets Inventory Accounts receivable (net) 1,720,000 1,050,000 375,000 Cash 480,000 Total current assets 3,145,000 Total assets € €7,500,000 Equity and Liabilities 2020 2019 Share capital-ordinary, €1 par Retained earnings €3,000,000 375,000 €3,000,000 400,000 Total equity 3,400,000 3,375,000 Long-term notes payable Current liabilities 3,300,000 825,000 Total liabilities 4,125,000 Total equity and liabilities €7,500,000