The following values relate to various ratios determined for a sole trader, Ben Bournemouth, for the year ended 30 June 2013. At that date, the total assets in the Balance Sheet were $900 000. The ratios relate to the accounts either in respect of the 12-month period or at the date of the Balance Sheet for the end of the period.
|
Gross Profit to Total Sales
|
=
|
25%
|
|
Current Ratio
|
=
|
2.5:1
|
|
Quick (acid test) Ratio
|
=
|
2:1
|
|
Credit Sales to Total Sales
|
=
|
75%
|
|
Non-current Assets to Current Assets
|
=
|
10%
|
|
Profit to Total Assets
|
=
|
15%
|
|
Accounts Payable to Purchases
|
=
|
40%
|
|
Profit Margin
|
=
|
10%
|
|
Profit to Equity (start of period)
|
=
|
30%
|
|
Credit Sales to Accounts Receivable
|
=
|
7.5:1
|
Required:
Assuming that there are no prepaid expenses and that accounts payable are the only liability, and rounding answers to the nearest dollar, prepare:
- A detailed Income Statement for the year ended 30 June 2013, including an itemised cost of sales calculation (assuming a periodic inventory system)
- The business' Balance Sheet as at 30 June 2013.