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Using Information in the Income Statement and Balance Sheets Below

question 60

Essay

Using information in the income statement and balance sheets below:
(A)determine the missing amounts.(B)Calculate the debt-to-assets ratio as of December 31,2007.(C)Calculate the asset turnover ratio and the net profit margin ratio for the year 2007.
CINNAMON AND SPICE, INC.
Income Statement For the Year Ended December 31, 2007
(in thousands of dollars)
 Revenues  Sales Revenue $318,020 Expenses  Cost of Goods Sold 214,900 Advertising and Promotion Expenses 12,200 Other Selling and Administrative Expenses ? Interest Expense 25,600 Income Tax Expense 17,700 Other Expenses 33,700 Total Expenses 332,600 Net Income $___?\begin{array}{lr}\text { Revenues }\\\text { Sales Revenue }&\$318,020\\\text { Expenses }\\\text { Cost of Goods Sold } & 214,900 \\\text { Advertising and Promotion Expenses } & 12,200 \\\text { Other Selling and Administrative Expenses } & ? \\\text { Interest Expense } & 25,600 \\\text { Income Tax Expense } & 17,700 \\\text { Other Expenses } & 33,700\\\text { Total Expenses }&332,600\\\\\text { Net Income }&\$\_\_\_?\end{array} CINNAMON AND SPICE, INC.
Balance Sheets
At December 31, 2007 and 2006
(in thousands of dollars)
12/31/0712/31/06 Assets  Cash $681,200$543,800 Accounts Receivable 356,400407,600 Inventories ?54,900 Property, Plant and Equipment 126,900119,300 Other Assets 75,60071,400 Total Assets $1,304,500? Liabilities  Accounts Payable $?$? Notes Payable 235,800265,100 Total Liabilities ?? Shareholders’ Equity  Contributed Capital ?? Retained Earnings 168.400127,300 Total Shareholders’ Equity 789,400589,400 Total Liabilities and  Shareholders’ Equity $1,304,500$1,197,000\begin{array}{lrr}&\underline{12 / 31 / 07}&\underline{12 / 31 / 06}\\\text { Assets } & & \\\text { Cash } & \$ 681,200 & \$ 543,800 \\\text { Accounts Receivable } & 356,400 & 407,600 \\\text { Inventories } & ?& 54,900 \\\text { Property, Plant and Equipment } & 126,900 & 119,300 \\\text { Other Assets } & 75,600 & 71,400\\\text { Total Assets }&\$1,304,500&?\\\\\text { Liabilities } & & \\\text { Accounts Payable } & \$ ? & \$ ? \\\text { Notes Payable } & 235,800 & 265,100 \\\text { Total Liabilities }&?&?\\\\\text { Shareholders' Equity } & & \\\text { Contributed Capital } & ? & ? \\\text { Retained Earnings } & 168.400 & 127,300\\\text { Total Shareholders' Equity }&789,400&589,400\\\\\text { Total Liabilities and }\\\text { Shareholders' Equity }&\$ 1,304,500 &\$ 1,197,000\end{array}


Definitions:

Proboscis

An elongated appendage from the head of an animal, especially an insect, used for feeding or sensing.

Deuterostomes

A major group within the animal kingdom that includes organisms developing an anus from the first opening in the embryo, with subsequent formation of the mouth.

Protostomes

A group of animals characterized by developing the mouth before the anus during embryonic development, including mollusks and arthropods.

Deuterostomes

A category of animals characterized by their embryo development; the first opening (the blastopore) becomes the anus.

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