Financial statement construction via ratios incomplete

Question

Financial statement construction via ratios. Incomplete financial statements of Lock Box, Inc., are presented below.

LOCK BOX, INC. Income Statement For the Year Ended December 31, 19X3
Sales	$ ?
Cost of goods sold	?
Gross profit	$15,000,000
Operating expenses & interest	?
Income before tax	$ ?
Income taxes, 40%	?
Net income	$ ?

 

LOCK BOX, INC. Balance Sheet December 31, 19X3
Assets
Cash Accounts receivable Inventory Property, plant, &. equipment      Total assets	$ ? ? ? 8,000,000 $24,000,000
Liabilities & Stockholders' Equity
Accounts payable Notes payable (short-term) Bonds payable Common stock Retained earnings      Total liabilities & stockholders' equity	$ ? 600,000 4,600,000 2,000,000 ? $24,000,000

 

Further information:

1. Cost of goods sold is 60% of sales. All sales are on account.
2. The company's beginning inventory is $5 million; inventory turnover is 4.
3. The debt to total assets ratio is 70%.
4. The profit margin on sales is 6%.
5. The firm's accounts receivable turnover is 5. Receivables increased by $400,000 during the year.