Transcribed Image Text: b. Complete the income statement and balance sheet for a Company by using following additional information: Additional Information Current ratio 3:1 $ 500 Depreciation Net Profit margin

Transcribed Image Text: b. Complete the income statement and balance sheet for a Company by using following additional
information:
Additional Information
Current ratio
3:1
$ 500
Depreciation
Net Profit margin
Total Liabilities to Total Equity
Average collection period
Inventory Turnover ratio
No of Days in a year
7%
1:1
45 days
3:1
360 days
Income statement for the Year 20XX (In
thousands)
Sales
$ 100,000
Cost of Goods sold
Gross profit
Selling
?
and
administrative
expenses
Interest expense
4,000
Profit before tax
?
Taxes (30% rate)
Profit after taxes
1
Balance Sheet As on June 30, 20XX (In thousands)
Cash
$ 5,000 Accounts payable
$ 4,000
Accounts receivable
? Bank loan
?
Inventories
? Accruals
2,000
Current Assets
?
Current Liabilities
?
Long-term Debt
26,500
Net Fixed Assets
? Common stock &
Retained
37,500
Earnings
Total Assets
?
Total Liabilities and Equity
?

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