Question #2

Compute the missing amounts, and complete the statements of the Omni Company (Hint: Complete the Income Statement first) OMNI COMPANY BALANCE SHEET AS OF DECEMBER 31, 2018 Cash ? Current Liabilities ? Accounts Receivable (Net) ? 9% Long-Term Bonds Payable ? Inventory ? Common Stock ? PPE (Net) ? Retained Earnings 950,000 Total Assets 6,500,000 Total Liablities and Stockholders' Equity 6,500,000 OMNI COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Net Sales ? Cost of Goods Sold ? Gross Profit ? SGA Expenses ? Income from Operations ? Interest Expense on Bonds Payable 80,000 Income before Income Taxes ? Income Tax Expense ? Net Income 580,000 The following information is available about Omni Company's financial statements: 1. The Accounts Receivable Collection Period (DRO) is 73 Days 2. The Days Inventory Outstanding (DIO) is 45.63 Days 3. The Quick Ratio for the firm is .96 4. The Net Profit Margin for the firm is 9% 5. The Gross Profit Margin for the firm is 34% 6. The Return on Common Equity for the firm is 18% 7. The Income Tax Rate for the firm is 22%