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The partiallycomplete 2012 balance sheet and income statement for ChallengeIndustries are given below, followed by selected ratio values forthe firm based on its completed 2012 financial statements. Use theratios along with the partial statements to complete the financialstatements. Hint: Use theratios in the order listed to calculate the missing statementvalues that need to be installed in the partialstatements.ChallengeIndustries, Inc.BalanceSheetAt December 31, 2012(in $ thousands)AssetsLiabilitiesand EquityCurrentassetsCurrentliabilities Cash$52,000 Accounts payable$150,000 Marketable securities60,000 Notes payable? Accounts receivable200,000 Accruals 80,000 Inventory ? Total currentliabilities? Total currentassets?Long-termdebt425,000Fixed assets(gross)?Totalliabilities?Less:Accumulated depreciation 240,000Shareholders’equity Net fixed assets? Preferred stockN/ATotalassets? Common stock (at par)150,000 Paid-in capital in excess of parN/A Retained earnings390,000Totalshareholders’ equity?Totalliabilities and shareholders’ equity?Inventory __________________ Total currentliabilities ______________Total currentassets__________ Totalliabilities ____________________Fixed assets(gross)__________ Net fixedassets_____________ Total assets________________ Totalshareholders’ equity ____________Notes payable______________ Totalliabilities and SHE _____________ChallengeIndustries, Inc.IncomeStatementFor the Year Ended December 31, 2012(in $thousands)Salesrevenue$4,800,000Less: Cost ofgoods sold ?Grossprofits?Less operatingexpenses: Sellingexpense$1,010,000 General andadministrative expense470,000 Depreciation440,000 Total operating expenses$1,920,000Earningsbefore interest and taxes?Less: Interestexpense 35,000Earningsbefore taxes?Less:Taxes130,000Net income(Net profits after taxes)?Less:Preferred dividends 15,000Earningsavailable for common stockholders?Less:Dividends 60,000To retainedearnings?ChallengeIndustries, Inc.Ratios for theYear Ended December 31, 2012RatioValueTotal assetturnover2.00Gross profitmargin40%Inventoryturnover10Currentratio1.60Net profitmargin3.75%Return oncommon equity12.5%Cost of Goods Sold__________ Taxes____________________Gross Profits_______________ Net income_______________EBIT_____________________ Earn commonshareholders ____________Earningsbefore taxes________ To retainedearnings __________________