Financial ratios computed for Whittaker Inc. include the following: Current ratio 1.9 to 1 Acid-test...
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Financial ratios computed for Whittaker Inc. include the following: Current ratio 1.9 to 1 Acid-test ratio 1.3 to 1 Debt/Equity ratio 2.0 to 1 Inventory turnover 4.0 times Accounts receivable turnover 6.8 times Times interest earned 4.45 times Gross profit ratio 40 % Return on investment 12 % Earnings per share $ 5.52 All sales during the year were made on account. Cash collections during the year exceeded sales by $28,000, and no uncollectible accounts were written off. The balance of the accounts receivable account was $114,000 on January 1, 2020. No common stock was issued during the year. Dividends declared and paid during the year were $15,200. The balance of the inventory account was $96,000 on January 1, 2020. Interest expense on the income statement relates to the 15% bonds payable; $20,000 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.
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