Constructing Statements from Ratio Data

The following are the $2012$ financial statements for Omicron Company, with almost all dollar amounts missing:

OMICRON COMPANY

Balance Sheet

December $31,2012$

Cash $?$ Current liabilities $?$

Accounts receivable $($net$)?8\%$ Bonds payable $?$

Inventory $?$ Common stock $?$

Equipment $($net$)?$ Retained earnings $900,000$

Total Assets $$6,200,000$ Total Liabilities andStockholders' Equity $$6,200,000$

OMICRON COMPANY

Income Statement

For the Year Ended December $31,2012$

Sales revenue $?$

Cost of goods sold $?$

Gross profit $?$

Selling and administrative expenses $?$

Income before interest expense and income taxes

Interest expense $80,000$

Income before income taxes $?$

Income tax expense $(30\%)?$

Net income $$590,000$

The following information is available about Omicron Company's financial statements:

$1.$ Quick ratio, $0\mathrm{.}90.$

$2.$ Inventory turnover $($inventory at January $1$ was $$924000),5$ times.

$3.$ Return on sales, $8\mathrm{.}0$ percent.

$4.$ Accounts receivable turnover $($accounts receivable $($net$)$ at January $1$ were $$960,000),9$ times.

$5.$ Gross profit percentage, $32$ percent.

$6.$ Return on common stockholders' equity $($common stockholders' equity at January $1$ was $$3,300,000),16$ percent.

$7.$ The interest expense relates to the bonds payable that were outstanding all year.

Required

Compute the missing amounts, and complete the financial statements of Omicron Company. Hint: Complete the income statement first.

OMICRON COMPANY

Income Statement

For the Year Ended December $31,2012$

Sales revenue

Cost of goods sold

Gross profit

Selling and administrative expenses

Income before interest expense and income taxes

Interest expense $80,000$

Income before income taxes

Income tax expense

Net income $$590,000$

OMICRON COMPANY

Balance Sheet

December $31,2012$

Cash Current liabilities

Accounts receivable $($net$)8\%$ Bonds payable

Inventory Common stock

Equipment $($net$)$ Retained earnings $900,000$

Total Assets $$6,200,000$ Total Liabilities andStockholders' Equity $$6,200,000$