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    Completing Financial Statements from Partial Data

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    The partially completed 2012 balance sheet and income statement for Challenge Industries are given below. Also provided are selected ratio values for the firm based on its completed 2012 Financial statements. Use the ratios along with the partially completed statements to create completed financial statements for the organization. Hint: Use the ratios in the order listed to calculate the missing statement values that need to be installed in the partial statements.

    Challenge Industries Inc, Balance Sheet
    At December 31, 2012 (in $thousands)

    Current Assets
    Cash $52,000
    Marketable Securities $60,000
    Accounts Receivable $200,000
    Total Current Assets_____?
    Fixed Assets (gross) ?
    Less Accumulated
    depreciation $240,000
    Net Fixed assets _____?
    Total Assets______?

    Liabilities and Equity

    Current Liabilities
    Accounts Payable $150,000
    Notes Payable_____?
    Accruals $80,000
    Total Current Liabilities______?
    Long-term debt $425,000
    Total Liabilities _____?
    Stockholders Equity
    Preferred Stock ?
    Common Stock (at par) $150,000
    Paid -in capital in excess of par ?
    Retained earnings $390,000
    Total Stockholders equity _____?
    Total liabilities and stockholders equity_____?

    Challenge Industries Inc
    Income Statement
    For the year ended December 31, 2012 (in $ thousands)

    Sales revenue $4,800,000
    Less: Costs of goods sold______?
    Gross Profits______?
    Less: Operating Expenses
    Sales expense $690,000
    General &Administrative expense $750,000
    Dedication Expense $120,000
    Total Operation Expenses $1,560,000

    Earnings before interest and taxes______?
    Less: Interest Expense $35,000
    Earnings before taxes ?
    Less :Taxes______?
    Net income(net profits after taxes) ?
    Less: Preferred dividends $15,000
    Earnings available for common stockholders ?
    Less: dividends $60,000
    To retained earnings _____?

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    Solution Summary

    The attached file contains detailed illustrations and instructions for the creation of a completed balance sheet and income statement from provided partial completed financial statement information and financial ratios for Challenge Industries for the year ending December 31, 2012.