This task must be completed in order from 1 to 11 as identified in both the Income Statement and the Balance Sheet. In addition, all answers must cite relevant supporting formulas used and show all detailed calculations showing the exact steps on how each of the answers were calculated in Microsoft Word format.
The following ratios information was calculated for Jones Furniture Manufacturing for 2010:
Profit margin 20%
Times interest earned 12 times
Receivables turnover 5 times
Acid-test ratio 1.4 : 1
Current ratio 2.5 : 1
Debt to total assets ratio 24%
The Jones Furniture Manufacturing Income Statement and Balance Statement's with the missing information are as follows:
Jones Furniture Manufacturing
Income Statement
For the Year Ended December 31, 2010
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Net sales....................................................................................................................... $200,000
Cost of goods sold...................................................................................................... 100,000
Gross profit.................................................................................................................. 100,000
Expenses:
Depreciation expense........................................................................................ $ ? (5)
Interest expense.................................................................................................. 5,000
Selling expenses.................................................................................................. 10,000
Administrative expenses................................................................................... 15,000
Total expenses............................................................................................ ? (4)
Income before income taxes................................................................................... ? (2)
Income tax expense.......................................................................................... ? (3)
Net income.................................................................................................................. $ ? (1)