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Financial ratios computed for Whittaker Inc. include the following:

Current ratio		2.1	to 1
Acid-test ratio		1.3	to 1
Debt/equity ratio		1.6	to 1
Inventory turnover		3.0	times
Accounts receivable turnover		5.8	times
Times interest earned		5.05	times
Gross profit ratio		40	%
Return on investment		8.07	%
Earnings per share	$	5.88

• All sales during the year were made on account. Cash collections during the year exceeded sales by $14,000, and no uncollectible accounts were written off.
• The balance of the accounts receivable account was $50,000 on January 1, 2020.
• No common stock was issued during the year.
• Dividends declared and paid during the year were $7,944.
• The balance of the inventory account was $19,760 on January 1, 2020.
• Interest expense on the income statement relates to the 10% bonds payable; $12,000 of these bonds were issued on May 1, 2020; the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount.

Required: a. Complete the income statement and balance sheet for Whittaker Inc.

B.

WHITTAKER INC. Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before taxes Income taxes (20%) Net income WHITTAKER INC. Balance Sheet December 31, 2020 Current assets: Cash Accounts receivable, net Inventory Total current assets $ 210,000 Property, plant, and equipment, net Total assets Current liabilities Bonds payable, 10% 72,000 Total liabilities 15,000 22,500 Stockholders' equity: Common stock, $4 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity

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