P15-7 Presented below is an incomplete income statement and an

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Presented below is an incomplete income statement and an incomplete comparative
balance sheet of Cotte Corporation

Cotte Corporation
Income Statement
For the Year Ended December 31, 2009
Net sales			11,000,000
Cost of goods sold			?
Gross profit			?
Operating expenses			1,665,000
Income from operations			?
Other expenses and losses
Interest expense			?
Income before income taxes			?
Income tax expense			560,000
Net income			?

Additional information:
1. The receivables turnover for 2009 is 10 times.
2. All sales are on account.
3. The profit margin for 2009 is 14.5%.
4. Return on assets is 22% for 2009.
5. The current ratio on December 31, 2009, is 3.0.
6. The inventory turnover for 2009 is 4.8 times.

Instructions
Compute the missing information given the ratios above. Show computations