4. Financial statement construction via ratios. Incomplete financial statements

Question

4. 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. Instructions: Using the preceding data, complete the income statement and the balance sheet.

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What are the answers to this statement?

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