4. Given the data below, reconstruct the balance sheet and the income statement of Fay Co. for the year 2020: FAY COMPANY Balance Sheet December 31, 2020 ASSETS LIABILITIES & EQUITY Current Assets Current Liabilities Cash Current liabilities P Marketable securities 50,000 Long-term Liabilities Accounts receivable-net Bonds payable 12% Inventories Total Current Assets Plant Assets Plant and Equipment-net Total Liabilities Stockholders' Equity Common stock P Retained earnings Total Assets Total Liabilities & Equity P FAY COMPANY Income Statement For Year ended Dec 31, 2020 Additional data: 525,000 Net Sales P COGS Gross Margin Operating expenses Operating income (EBIT) Interest expense Net income before taxes(EBT) Income tax 35% Net Income P 1. Operating expenses = 15% of net sales 2. Acid test ratio is 1.3:1 3. Times-interest-earned = 6 times 4. Gross margin is 35% of net sales 5. DSO = 36 days 6. Beginning balance of accounts receivable is P160,000. Use 360 day year. 7. Inventory turnover is 4 times. Beginning inventory is P250,000