Constructing Statements from Ratio Data The following are the financial statements for Timber Company, with almost all dollar amounts missing:

TIMBER COMPANY Balance Sheet December 31, 2012
Cash	?		Current liabilities	?
Accounts receivable (net)	?		10% Bonds payable	144,000
Inventory	?		Common stock	?
Equipment (net)	?		Retained earnings	48,000
			Total Liabilities and
Total Assets	$676,000		Stockholders' Equity	$676,000

TIMBER COMPANY Income Statement For the Year Ended December 31, 2013
Sales revenue	?
Cost of goods sold	?
Gross profit	?
Selling and administrative expenses	?
Income before interest expense and income taxes
Interest expense	?
Income before income taxes	?
Income tax expense (35%)	?
Net income	$85,200

The following information is available about Timber Company's financial statements: 1. Quick ratio, 1.65. 2. Current ratio, 3.15. 3. Return on sales,7.5 percent. 4. Return on common stockholders' equity (common stockholders' equity at January 1 was $342,000), 20 percent. 5. Gross profit percentage, 30 percent. 6. Accounts receivable turnover (accounts receivable (net) at January 1 were $97,200), 10 times. 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 Timber Company. (Hint: Complete the income statement first.)

TIMBER COMPANY Balance Sheet December 31, 2012
Cash	$Answer		Current liabilities	$Answer
Accounts receivable (net)	Answer		8% Bonds payable	144,000
Inventory	Answer		Common stock	Answer
Equipment (net)	Answer		Retained earnings	48,000
			Total Liabilities and
Total Assets	$676,000		Stockholders' Equity	$676,000

TIMBER COMPANY Income Statement For the Year Ended December 31, 2012
Sales revenue	$Answer
Cost of goods sold	Answer
Gross profit	Answer
Selling and administrative expenses	Answer
Income before interest expense and income taxes	Answer
Interest expense	Answer
Income before income taxes	Answer
Income tax expense (35%)	Answer
Net income	$75,000