Pepper Company provided the incomplete financial statements shown below as well as the following additional information: All
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Question:
Pepper Company provided the incomplete financial statements shown below as well as the following additional information:
All sales during the year were on account.
There was no change in the number of shares of common stock outstanding during the year.
The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year.
Selected balances at the beginning of the current year were:
Accounts receivable $
Inventory $
Total assets $
Selected financial ratios computed from the statements below for the current year are:
Earnings per share $
Debttoequity ratio
Accounts receivable turnover
Current ratio
Return on total assets
Times interest earned ratio
Acidtest ratio
Inventory turnover
Required:
Compute the missing amounts on the company's financial statements. Hint: Whats the difference between the acidtest ratio and the current ratio?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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