The Following Ratios Have Been Computed for Mason Company for 2017

question 216

Essay

The following ratios have been computed for Mason Company for 2017. $$\begin{array} { l r } \text { Profit margin } & 12.5 \% \\\text { Times interest earned } & 8 \text { times } \\\text { Receivables turnover } & 4 \text { times } \\\text { Acid-test ratio } & 2 : 1 \\\text { Current ratio } & 3 : 1 \\\text { Debt to assets ratio } & 20 \%\end{array}$$ 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.

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Definitions:

Anaerobic Respiration

A form of respiration that occurs without oxygen, producing energy by breaking down glucose through processes like fermentation.

Alcoholic Fermentation

A biological process in which sugars such as glucose, fructose, and sucrose are converted into cellular energy and thereby produce ethanol and carbon dioxide as metabolic waste products.

Lactate Fermentation

An anaerobic metabolic process by which glucose or other six-carbon sugars are converted into cellular energy and the metabolite lactate, commonly used by muscle cells during intense activity.