Incomplete financial statements for Pepper Industries follow:

Pepper Industries

Income Statement

For the Year Ended March 31

The following additional information is available about the company:

a. All sales during the year were on account.

b. There was no change in the number of shares of common stock outstanding during the year.

c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year.
d. Selected balances at the beginning of the current year were:

Accounts receivable . . . . . . . . . . . . . . . . . . . . . .     $270,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $360,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $1,800,000

e. Selected financial ratios computed from the statements above for the current year are:

Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.30
Debt-to-equity ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.875
Accounts receivable turnover . . . . . . . . . . . . . . . . . . . . .     14.0
Current ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2.75
Return on total assets . . . . . . . . . . . . . . . . . . . . . . . . . . .   18.0%
Times interest earned ratio . . . . . . . . . . . . . . . . . . . . . .      6.75
Acid-test ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1.25
Inventory turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         6.5

Required:
Compute the missing amounts on the company’s financial statements.

Transcribed Image Text:

Pepper Industries Balance Sheet March 31 Current assets: Cash.. $ ? Accounts receivable, net ? Inventory ? Total current assets ? Plant and equipment, net ? Total assets $ ? Liabilities: Current liabilities... Bonds payable, 10% $320,000 ? Total liabilities .. ? Stockholders' equity: Common stock, $5 par value . ? Retained earnings ? Total stockholders' equity ... ? Total liabilities and stockholders' equity .... %24