Financial ratios computed for Whittaker, Inc., include the following:

Current ratio		2.2	to 1
Acid-test ratio		1.2	to 1
Debt/equity ratio		2.2	to 1
Inventory turnover		2.5	times
Accounts receivable turnover		5.7	times
Times interest earned		4.75	times
Gross profit ratio		40	%
Return on investment		10.94	%
Earnings per share	$	7.44

All sales during the year were made on account. Cash collections during the year exceeded sales by $16,000, and no uncollectible accounts were written off.

The balance of the accounts receivable account was $44,000 on January 1, 2017.

No common stock was issued during the year.

Dividends declared and paid during the year were $5,608.

The balance of the inventory account was $43,496 on January 1, 2017.

Interest expense on the income statement relates to the 10% bonds payable; $12,000 of these bonds were issued on May 1, 2017; the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount.

WHITTAKER, INC.
Balance Sheet
December 31, 2017
Current assets:
Cash
Accounts receivable, net
Inventory
Total current assets	$121,000
Property, plant, and equipment, net
Total assets
Current liabilities
Bonds payable, 10%	66,000
Total liabilities
Stockholders equity:
Common stock, $4 par value	$10,000
Additional paid-in capital	15,000
Retained earnings
Total stockholders equity
Total liabilities and stockholders equity

Income Statement

For the Year Ended December 31, 2017
Sales
Cost of goods sold
Gross profit
Operating expenses
Income from operations
Interest expense
Income before taxes
Income taxes (20%)
Net income