(L. OBJ. 4) Using ratios to reconstruct an income statement [10 min] A skeleton of Heir...

(L. OBJ. 4) Using ratios to reconstruct an income statement [10 min]

A skeleton of Heirloom Mills’ income statement appears as follows (amount in thousands):

Requirement

1. Use the following ratio data to complete Heirloom Mills’ income statement:

a. Inventory turnover was 4.50 (beginning inventory was $790; ending inventory was $750).

b. Rate of return on sales is 0.09.