Question #3

Compute the missing amounts, and complete the statements of the Darius Co

(Hint: Complete the Income Statement first)

DARIUS COMPANY

BALANCE SHEET

AS OF DECEMBER 31, 2016

Cash ? Current Liabilities ?

Accounts Receivable (Net) ? 5.62% Long-Term Bonds Payable 4,200,000

Inventory ? Common Stock ?

PPE (Net) ? Retained Earnings 2,430,000

Total Assets ? Total Liabilities and Stockholders' Equity 8,900,000

DARIUS COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2016

Net Sales ?

Cost of Goods Sold ?

Gross Profit ?

SGA Expenses ?

Income from Operations ?

Interest Expense on Bonds Payable ?

Income before Income Taxes ?

Income Tax Expense ?

Net Income 756,000

The following information is available about Darius Company's financial statements:

1. The Accounts Receivable Collection Period (DRO) is 42.3 Days

2. The Days Inventory Outstanding (DIO) is 55.6 Days

3. The Current Ratio for the firm is 4.56

4. The Net Profit Margin for the firm is 10.23%

5. The Operating Profit Margin for the firm is 16.71%

6. The Gross Profit Margin for the firm is 37.5%

7. The Return on Common Equity for the firm is 18.6%

8. The Income Tax Rate for the firm is 24.3%