Question $1$

Ambrose Walsh, the accountant for Richardson Corporation, prepared the year$-$end financial

statements, including all ratios, and agreed to bring them along on a hiking trip with the executives

of the corporation. To his embarrassment, he found that only certain fragmentary information had

been placed in his briefcase and the completed statements had been left in his office. One hour

before Walsh was to present the financial statements to the executives, he was able to come up

with the following information:

Richardson Corporation

Balance Sheet

December $31,20$XX

$($in thousands of dollars$)$

Richard Corporation

Income Statement

For year ended December ${31}^{st}20xx$

$($in thousands of dollars$)$

Additional Information:

The debt to equity ratio was $40\%,$ the debt ratio was $60\%.$

The only interest expense was on the long$-$term debt.

The beginning inventory is $$450,000$; the inventory turnover was $4\mathrm{.}8$ times.

The current ratio was $2$:$1$; the quick ratio was $1$:$1.$

The beginning balance in accounts receivable was $$240,000$; the accounts receivable

turnover for the year was $12\mathrm{.}8$ times. All sales were made on account.

Required:

a$.$

The accountant asked you to help complete the financial statements for Richardson Corporation,

using only the information available. Present supporting calculations and explanations for all

amounts appearing in the balance sheet and the income statement.