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The following information is available for Pepper Industries. All sales during the year were on account.

The following information is available for Pepper Industries.

a. All sales during the year were on account.
b. There was no change in the number of shares of common stock outstanding during the year.
c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year.

d. Selected balances at the beginning of the current year were:

Accounts receivable $270,000
Inventory $622,300
Total assets $4,485,000


e. Selected financial ratios computed from the statements for the current year are:

Earnings per share $2.63
Debt-to-equity ratio 0.7845
Accounts receivable turnover 15.00
Current ratio 2.90
Return on total assets 12 %
Times interest earned ratio 8.40
Acid-test ratio 2.20
Inventory turnover 5.70


Compute the missing amounts on the company's financial statements. (Round average number of common shares outstanding to nearest thousand, Debt-to equity ratio to 3 decimal places, Total stockholders' equity to nearest thousand and your final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

Pepper Industries
Income Statement
For the Year Ended March 31
Sales $4,500,000
Cost of goods sold

Gross margin
Selling and administrative expenses

Net operating income
Interest expense 69,000

Net income before taxes
Income taxes (30%)
Net income $


Pepper Industries
Balance Sheet
March 31
Current assets:
Cash $
Accounts receivable, net

Total current assets
Plant and equipment
Total assets $

Current liabilities $311,000
Bonds payable, 10%
Total liabilities

Stockholders' equity:
Common stock, $5 par value
Retained earnings

Total stockholders' equity
Total liabilities and equity $

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