1. Given the following information, complete the balance sheet shown below.
Collection period 71 Days
Days’ sales in cash 34 Days
Current ratio 2.6
Inventory turnover 5 time
Liabilities to assets 75%
Payables period 36 days
(All sales are on credit. All calculations assume a 365-day year. Payables period is based on cost of goods sold.)
Assets
Current assets:
Cash $1,100,00
Accounts receivable
Inventory 1,900,000
Total current assets
Net fixed assets _________
Total assets 8,000,000
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable
Short-term debt __________
Total current liabilities
Long-term debt
Shareholders’ equity __________
Total liabilities and equity