Answer to Question #287695 in Accounting for Hasen

Question

6. Complete the following financial statements of Omega Company on the basis of the ratios given below. Omega Company Profit and loss account For the year ended June 30 2001 Sales 2,000,000 Cost of Goods Sold 600,000 Gross Profit 1,400,000 Operating Expenses 1,190,000 Earnings Before Interest and Tax.....A?

Debenture Interest 10,000

Income Tax....B?

Net Profit.....C?

Omega Company Balance sheet For the year ended June 30 2001 Assets Liabilities Cash...D? Sundry creditors 60,000 Stocks....E? 10% Debentures...I?

Debtors 35,000 Total liabilities... J?Total Current Assets.. F?Reserve and Surplus....K? Fixed Assets.... G? Share Capital...L? Total Assets..... H?Total Liability and Equity...M?

Additional Information: A. Net Profit to Sale 5%     D. Inventory Turnover 15 times B. Current Ratio  1.5     E. Share Capital to Reserve 4:1 C. Return on Net Worth  20 %   F. Tax Rate  50 %  

Answer 1

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