PART 4: UNDERSTANDING THE FINANCIAL STATEMENTS OF BUSINESS CUSTOMERS

Asked: Use the information from the ratios to complete the balance sheet and income statement for Pete Unlimited.

You are provided with the following financial ratios of Pete Unlimited:

Income statement for the year ended 28 February 20xx

Sales (Turnover)                 $________    

Inventory (stock) beginning of year $________   

Plus Purchases         $7,900,000

Less Inventory (stock) end of year $________                 

Cost of sales                 $________

Gross Income         $________ 

Operating expenses         $________          

Depreciation                 $260,000

Net income before interest and taxation $740,000

Interest payments         $________    

Net income before taxation $________