2. Powerful Tools Inc., a construction equipment manufacturer, has lost some information on its financial statements....

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2. Powerful Tools Inc., a construction equipment manufacturer, has lost some information on its financial statements. Help the firm's financial staff to fill in the missing data using your knowledge of financial ratios. Powerful Tools Inc. Income Statement For the Year Ended December 31, 2017 2017 Sales Cost of Goods Sold Gross Profit Operating Expenses EBIT Interest Expense Earnings Before Taxes Taxes Net Income Notes: Tax Rate Ratio Inventory Turnover Net Profit Margin Total Debt Ratio Gross Profit Margin Ratio Formula Ratio Formula Ratio Formula Formula Formula 50,000 40% Value 5.00x 7% 60.00% 30.00% 15.00% 5.00% 50.00% Assets Cash Powerful Tools Inc. Balance Sheet As of December 31, 2017 Accounts Receivable Inventories Total Current Assets Gross Fixed Assets Accumulated Depreciation Net Fixed Assets Total Assets Liabilities and Owner's Equity Accounts Payable Short-term Bank Notes Total Current Liabilities Long-term Debt Total Liabilities Common Equity Total Liab. and OE 2017 70,000 50,000 Ratio Formula 1,000,000 Formula Formula Ratio 20,000 Formula Formula Ratio Ratio Formula Formula Operating Profit Margin Return on Total Assets Long-Term Debt Ratio a) Using the ratios provided, recreate the financial statements as shown using formulas. b) Complete the financial statements by using formulas that refer to existing data to fill in the remaining cells. 2. Powerful Tools Inc., a construction equipment manufacturer, has lost some information on its financial statements. Help the firm's financial staff to fill in the missing data using your knowledge of financial ratios. Powerful Tools Inc. Income Statement For the Year Ended December 31, 2017 2017 Sales Cost of Goods Sold Gross Profit Operating Expenses EBIT Interest Expense Earnings Before Taxes Taxes Net Income Notes: Tax Rate Ratio Inventory Turnover Net Profit Margin Total Debt Ratio Gross Profit Margin Ratio Formula Ratio Formula Ratio Formula Formula Formula 50,000 40% Value 5.00x 7% 60.00% 30.00% 15.00% 5.00% 50.00% Assets Cash Powerful Tools Inc. Balance Sheet As of December 31, 2017 Accounts Receivable Inventories Total Current Assets Gross Fixed Assets Accumulated Depreciation Net Fixed Assets Total Assets Liabilities and Owner's Equity Accounts Payable Short-term Bank Notes Total Current Liabilities Long-term Debt Total Liabilities Common Equity Total Liab. and OE 2017 70,000 50,000 Ratio Formula 1,000,000 Formula Formula Ratio 20,000 Formula Formula Ratio Ratio Formula Formula Operating Profit Margin Return on Total Assets Long-Term Debt Ratio a) Using the ratios provided, recreate the financial statements as shown using formulas. b) Complete the financial statements by using formulas that refer to existing data to fill in the remaining cells.