The following ratios have been computed for Mason Company for 2017. $20%\begin{array} { l r } \text { Profit margin } & 12.5 \% \\\text { Times interest earned } & 8 \text { times } \\\text { Receivables turnover } & 4 \text { times } \\\text { Acid-test ratio } & 2 : 1 \\\text { Current ratio } & 3 : 1 \\\text { Debt to assets ratio } & 20 \%\end{array}$ Mason Company's 2017 financial statements with missing information follow:
Instructions
Use the above ratios and information from the Mason Company financial statements to fill in the missing information on the financial statements. Follow the sequence indicated. Show computations that support your answers.

Question

The following ratios have been computed for Mason Company for 2017.

20%\begin{array} { l r } \text { Profit margin } & 12.5 \% \\\text { Times interest earned } & 8 \text { times } \\\text { Receivables turnover } & 4 \text { times } \\\text { Acid-test ratio } & 2 : 1 \\\text { Current ratio } & 3 : 1 \\\text { Debt to assets ratio } & 20 \%\end{array}

Mason Company's 2017 financial statements with missing information follow:
Instructions
Use the above ratios and information from the Mason Company financial statements to fill in the missing information on the financial statements. Follow the sequence indicated. Show computations that support your answers.

Maombi Yeremiya · Accepted Answer

Final Answer :  (10) Bonds payable   = $ 20 , 000 = \$ 20,000 = $20 , 000 Let   X = X = X =   Total debt X $ 350 , 000 = 20 % X = $ 70 , 000 $ 70 , 000 − ( $ 10 , 000 + $ 40 , 000 ) = $ 20 , 000 \begin{array} { l } \frac { X } { \$ 350,000 } = 20 \% \\X = \$ 70,000 \\$ 70,000 - ( \$ 10,000 + \$ 40,000 ) = \$ 20,000\end{array} $350 , 000 X ​ = 20% X = $70 , 000 $70 , 000 − ( $10 , 000 + $40 , 000 ) = $20 , 000 ​   (11) Total liabilities and stockholders' equity = $350000; same as total assets-see (9) above.

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