Presented below is an incomplete income statement and incomplete comparative
Presented below is an incomplete income statement and incomplete comparative statements of financial position of Bondi ASA.
BONDI ASA
Income Statement
For the Year Ended December 31, 2017
Net sales ……………………………….. €10,500,000
Cost of goods sold ……………………………..?
Gross profit …………………………………… ?
Operating expenses ……………………… 1,500,000
Income from operations ……………………… ?
Interest expense ……………………………… ?
Income before income taxes …………………. ?
Income tax expense ………………………. 550,000
Net income ……………………………… € … ?
BONDI ASA
Statements of Financial Position
December 31
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Additional information:
1. The accounts receivable turnover for 2017 is 8 times.
2. All sales are on account.
3. The profit margin for 2017 is 14.5%.
4. Return on assets is 20% for 2017.
5. The current ratio on December 31, 2017, is 2.5.
6. The inventory turnover for 2017 is 4.9 times.
Instructions
Compute the missing information given the ratios above. Show computations. (Start with one ratio and derive as much information as possible from it before trying another ratio. List all missing amounts under the ratio used to find the information.)
Presented below is an incomplete income statement and incomplete comparative