Financial ratios computed for Whittaker Inc. include the following: 1.6 to 1 1.3 to 1 Current...

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Financial ratios computed for Whittaker Inc. include the following: 1.6 to 1 1.3 to 1 Current ratio Acid-test ratio Debt/equity ratio. Inventory turnover 2.0 to 1 2.5 times 5.8 times 4.80 times Accounts receivable turnover Times interest earned Gross profit ratio. Return on investment Earnings per share 40% 9.26% $8.71 • All sales during the year were made on account. Cash collections during the year exceeded sales by $17,000, and no uncollectible accounts were written off. • The balance of the accounts receivable account was $45,000 on January 1, 2020. • No common stock was issued during the year. es • Dividends declared and paid during the year were $8,628. • The balance of the inventory account was $73,491 on January 1, 2020. • Interest expense on the income statement relates to the 12% bonds payable; $10,000 of these bonds were issued on May 1, 2020; the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount. Required: a. Complete the income statement and balance sheet for Whittaker Inc. WHITTAKER INC. Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Gross profit s a. Complete the income statement and balance sheet for Whittaker Inc. WHITTAKER INC. Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before taxes Income taxes (25%) Net income WHITTAKER INC. Balance Sheet December 31, 2020 Current assets: Cash Accounts receivable, net Inventory Total current assets Property, plant, and equipment, net Total assets Current liabilities Bonds payable, 12% Total liabilities Stockholders' equity: Common stock, $4 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 150,000 67,000 10,000 15,000 $ Financial ratios computed for Whittaker Inc. include the following: 1.6 to 1 1.3 to 1 Current ratio Acid-test ratio Debt/equity ratio. Inventory turnover 2.0 to 1 2.5 times 5.8 times 4.80 times Accounts receivable turnover Times interest earned Gross profit ratio. Return on investment Earnings per share 40% 9.26% $8.71 • All sales during the year were made on account. Cash collections during the year exceeded sales by $17,000, and no uncollectible accounts were written off. • The balance of the accounts receivable account was $45,000 on January 1, 2020. • No common stock was issued during the year. es • Dividends declared and paid during the year were $8,628. • The balance of the inventory account was $73,491 on January 1, 2020. • Interest expense on the income statement relates to the 12% bonds payable; $10,000 of these bonds were issued on May 1, 2020; the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount. Required: a. Complete the income statement and balance sheet for Whittaker Inc. WHITTAKER INC. Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Gross profit s a. Complete the income statement and balance sheet for Whittaker Inc. WHITTAKER INC. Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before taxes Income taxes (25%) Net income WHITTAKER INC. Balance Sheet December 31, 2020 Current assets: Cash Accounts receivable, net Inventory Total current assets Property, plant, and equipment, net Total assets Current liabilities Bonds payable, 12% Total liabilities Stockholders' equity: Common stock, $4 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 150,000 67,000 10,000 15,000 $

Answer rating: 100% (QA)

a Income statement for 31122020 SalesExp5 COGSExp6 Gross profit Operating expenses Operating incomeE... View the full answer