Question: Use the information provided about Kynocks Inc. to determine the missing information from its December 31, 2017 balance sheet and for the income statement for
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Additional information:
¢ No dividends were paid during the year.
¢ There are no preferred shares outstanding.
¢ All sales and purchases of inventory are on credit.
¢ No new common shares were issued during the year and no common shares were repurchased during the year.
¢ Tax rate ? 20.63%.
¢ Gross margin percentage ? 40%.
¢ Profit margin percentage ? 20%.
¢ Interest coverage ratio ? 6.2085.
¢ EPS ? $0.40.
¢ ROA ? 9.85.
¢ Inventory turnover ratio ? 5.474.
¢ Accounts receivable turnover ratio ? 21.739.
¢ Accounts payable turnover ratio ? 7.589.
¢ Debt-to-equity ratio ? 0.733.
¢ Current ratio ?2.222.
Kynocks Inc. Balance Sheets As of December 31 2017 2016 S110,000 105,000 248,000 146,000 Cash Accounts receivable nventory Capital assets (net) Total assets Accounts payable Long-term debt Common shares Retained earnings Total liabilities and shareholders' equity: 100,000 75,000 250,000 $609,000 Kynocks Inc Income Statement For the Year Ended December 31, 2017 Revenue Cost of sales Gross margin Selling, general, and administrative expenses Interest expense Income before taxes ncome tax expense Net income Number of common shares outstanding during 2017 1500,000
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