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Completing Financial Statements from Partial Data

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 _____?

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.