An incomplete income statement and an incomplete comparative balance sheet of Deines Corporation are presented below.

Additional information:

1. The accounts receivable turnover for 2020 is 10 times
2. All sales are on account.
3. The profit margin for 2020 is 14.5%.
4. Return on assets is 22% for 2020.
5. The current ratio on December 31, 2020 is 3.0
6. The inventory turnover for 2020 is 4.8 times

Instructions

Compute thee missing information given the ratios above. Show computations.

Solution