1. Given the data below, reconstruct the balance sheet and the income statement of Regodos Pearls for the year 2017: Regodos Pearls Balance Sheet December 31, 2017 ASSETS Current Assets: Cash Marketable Securities 50,000 Accounts Receivable, net ? Inventories Property & Equipment: Plant & Equipment, net TOTAL ASSETS LIABILITIES & STOCKHOLDERS EQUITY Current Liabilities ? Long Term Liabilities: Bonds Payable, 12.5% TOTAL LIABILITIES Stockholders Equity: Ordinary Share 500.000 Retained Earnings 300.000 800,000 TOTAL LIABILITIES & ? STOCKHOLDERS EQUITYRegodos Pearls Income Statement For the year ended December 31, 2017 Net Sales Cost of Goods Sold Gross Margin on Sales 525.000 Operating Expenses Operating Income Other Expense: Interest Expense Net Income before Taxes Income Tax (35% Tax Rate) NET INCOMEAdditional Data: 1. Operating expenses were 15% of net sales. 2. Acid test ratio was 1.3:1. 3. Times interest earned was 6 times. 4. Gross margin was 35% of net sales. 5. The age of receivables was 36 days. 6. The beginning accounts receivable was Php 160,000. Use 360 day year. 7. Inventory turnover was 4 times. The beginning inventory amounted to Php 250,000. 8. Total debt to stockholders' equity was 0.08:1. Required: Compute the following requirements using the given formula: 1. Net Sales =(Gross margin/gross margin ratio) 2. Cost of sales= (Net Sales x Cost of Sales ratio) 3. Operating Expenses= (Net Sales x % to Net Sales) 4. Operating Income = (Net Sales - Cost of Sales - Operating Expenses) 5. Interest Expense = (Operating Income/Times Interest Earned 6. Bond Payable = (Interest Expense/Interest Rate) 7. Receivable Turnover =(360 days/Age in Receivables) 8. Average Receivables = (Net Credit Sales/Receivable Turnover) 9. Ending Accounts Receivable = (Average Receivables x 2) 10. Average Inventory = (Cost of Goods Sold / Inventory Turnover) 11. Ending Inventory = (Average Inventory x 2) 12. Total Debt = (Ratio of Total Debt & Stockholders ' Equity) 13. Current Liabilities = (Total Debt - Bonds Payable) 14. Quick Assets = (Acid Test ratio x Current Liabilities) 15. Cash = (Quick Assets - Marketable Securities - Accounts Receivable)