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Bondi 10500000

Price: $2.50


Presented below is an incomplete income statement and an incomplete comparative
balance sheet of Bondi Corporation.

Bondi Corporation
Income Statement
For the Year Ended December 31, 2014
Net sales   10,500,000
Cost of goods sold   ? 
Gross profit   ? 
Operating expenses   1,500,000
Income from operations   ?  
Other expenses and losses
 Interest expense   ? 
Income before income taxes   ? 
Income tax expense   550,000
Net income   ? 




Bondi Corporation
Balance Sheets
31-Dec
Assets 2014 2013
Current assets 
Cash   480,000  375,000
Accounts receivable (net)   ?    950,000
 Inventory   ?    1,720,000
 Total current assets   ?    3,045,000
Plant assets (net)   4,620,000  4,455,000
Total assets   ?   7,500,000




Assets   2,014  2,013
Liabilities and Stockholders' Equity 
Current liabilities   ?   825,000
Long-term notes payable   ?   3,300,000
 Total liabilities   ?    4,125,000
Common stock, $1 par   3,000,000  3,000,000
Retained earnings   400,000  375,000
 Total stockholdersĂ• equity   3,400,000  3,375,000
Total liabilities and stockholders' equity   ?   7,500,000

Additional information:
1. The receivables turnover for 2014 is 10 times.
2. All sales are on account.
3. The profi t margin for 2014 is 14.5%.
4. Return on assets is 20% for 2014.
5. The current ratio on December 31, 2014, is 3.0.
6. The inventory turnover for 2014 is 4.2 times.
Instructions
Compute the missing information given the ratios above

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