Tribke Enterprises collected the following data from its financial reports for 2012:

Stock price $18.37
Inventory balance $300,000
Expenses (excluding COGS) $1,120,000
Shares outstanding 290,000
Average issue price of shares $5.00
Gross margin % 40%
Interest rate 8%
TIE ratio 8
Inventory turnover 12 x
Current ratio 1.5
Quick ratio .75
Fixed asset turnover 1.5

Complete the following abbreviated financial statements, and calculate per share ratios indicated. (Hint: Start by subtracting the formula for the quick ratio from that for the current ratio and equating that to the numerical difference.)

Set up an income statement that includes revenue, COGS, GM, EBIT, EBT, and EAT. Set up a balance sheet that includes Current assets, Fixed assets, Total assets, current liabilities, long-term debt, Equity (paid in capital*, and retained earnings), total equity, and total liabilities & equity.

*Paid-in capital = Common Stock + Paid-in Excess

Ashley,

If you look at the bottom of your page under "Related Questions", this same question has been answered 4 different times.

To complete the income statement, we need to calculate the missing values such as revenue, COGS, GM, EBIT, EBT, and EAT using the provided information.

1. Revenue: Revenue can be calculated using the formula: Revenue = Stock Price * Shares Outstanding. In this case, Revenue = $18.37 * 290,000 = $5,331,300.

2. COGS (Cost of Goods Sold): We can calculate COGS using the Gross Margin (%). COGS = Revenue * (1 - Gross Margin %). In this case, COGS = $5,331,300 * (1 - 0.4) = $3,198,780.

3. Gross Margin (GM): GM = Revenue - COGS. In this case, GM = $5,331,300 - $3,198,780 = $2,132,520.

4. EBIT (Earnings Before Interest and Taxes): EBIT can be calculated by subtracting Expenses (excluding COGS) from GM. In this case, EBIT = GM - Expenses = $2,132,520 - $1,120,000 = $1,012,520.

5. EBT (Earnings Before Taxes): EBT can be calculated by multiplying EBIT by (1 - Tax Rate %). Since we are not provided with the tax rate, we cannot calculate EBT accurately.

6. EAT (Earnings After Taxes): EAT will be the same as EBT if we assume no taxes. Without tax information, we cannot accurately calculate EAT.

Now, let's move on to setting up the balance sheet:

1. Current Assets: The provided information does not explicitly state the individual components of current assets. Without this information, we cannot determine the value for current assets accurately.

2. Fixed Assets: The Fixed Assets turnover ratio can be used to calculate Fixed Assets. Fixed Assets = Revenue / Fixed Asset Turnover. In this case, Fixed Assets = $5,331,300 / 1.5 = $3,554,200.

3. Total Assets: Total Assets can be calculated by adding Current Assets and Fixed Assets. Without the current assets' information, we cannot calculate Total Assets accurately.

4. Current Liabilities: To calculate Current Liabilities, we need the values for the Current Ratio and Quick Ratio. The given information provides these ratios:

- Current Ratio = Current Assets / Current Liabilities = 1.5
- Quick Ratio = (Current Assets - Inventory) / Current Liabilities = 0.75

By substituting in the values, we can set up the following equation:

1.5 = (Current Assets - Inventory) / Current Liabilities

Solving for (Current Assets - Inventory), we get:

Current Assets - Inventory = 1.5 * Current Liabilities

Since we have the value for the Quick Ratio as 0.75, we can substitute this value into the equation:

0.75 * Current Liabilities = 1.5 * Current Liabilities - Inventory

Solving for Inventory, we get:

Inventory = 0.75 * Current Liabilities

However, we do not have the value for Current Liabilities, so we cannot calculate Inventory accurately.

5. Long-term Debt: The given information does not provide any values for long-term debt.

6. Equity:
- Paid-in Capital: Provided information states that Paid-in Capital equals Common Stock plus Paid-in Excess. We do not have the values for each of these components, so we cannot calculate Paid-in Capital accurately.
- Retained Earnings: The given information does not provide any values for retained earnings.

7. Total Equity: Without the values for Paid-in Capital and Retained Earnings, we cannot calculate Total Equity accurately.

8. Total Liabilities & Equity: Without the values for Total Assets, Long-term Debt, and Total Equity, we cannot calculate Total Liabilities & Equity accurately.

Unfortunately, based on the given information, we are unable to complete the financial statements and calculate the per share ratios accurately.