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Income Statement and Balance Sheet for Pepper Industries

Build an income statement & balance sheet from given data and ratios. I have the income statement correct, but I'm tied up on the balance sheet and I think it's because of the stock part. See attached file for full problem description.

Balance Sheet
March 31

Current assets:
Cash $80,000
Accounts receivable, net 520,000
Inventory 280,000
Total current assets 880,000
Plant and equipment, net 320,000
Total assets $1,200,000

Current liabilities $320,000
Bonds payable, 10% 8,000
Total liabilities 328,000
Stockholders' equity:
Common stock, $5 par value 700,000
Retained earnings 413,000
Total stockholders' equity 287,000
Total liabilities and equity $615,000

Income Statement
For the Year Ended March 31

Sales $4,200,000
Less cost of goods sold 2,080,000
Gross margin 2,120,000
Less operating expenses 1,580,000
Net operating income 540,000
Less interest expense 80,000
Net income before taxes 460,000
Less income taxes (30%) 138,000
Net income $322,000

Balances at beginning of current year:
Accounts receivable $270,000
Inventory $360,000
Total assets $1,800,000

Typical ratios:
Earnings per share $2.30
Debt-to-equity ratio 0.875
Accounts receivable turnover 14.0
Current ratio 2.75
Return on total assets 18.0%
Times interest earned 6.75
Acid-test (quick) ratio 1.25
Inventory turnover 6.5
Accounts receivable $160,000
Inventory 280,000
Total assets 1,200,000


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Solution Summary

The solution explains the preparation of income statement and balance sheet for Pepper Industries given some missing data and ratios.