Response to the following problem:
Balance sheet completion using ratios Complete the 2003 balance sheet for O'Keefe Industries using the information that follows it.
O'Keefe Industries
Balance Sheet
December 31, 2003
|
Assets
|
|
Liabilities and Stockholders' Equity
|
|
Cash
|
$30,000
|
Accounts payable
|
$120,000
|
|
Marketable securities
|
25,000
|
Notes payable
|
-
|
|
Accounts receivable
|
-
|
Accruals
|
20,000
|
|
Inventories
|
-
|
Total current liabilities
|
-
|
|
Total current assets
|
-
|
Long-term debt
|
-
|
|
Net fixed assets
|
-
|
Stockholders' equity
|
$60,000
|
|
Total assets
|
$
|
Total liabilities and
|
-
|
|
|
stockholders' equity
|
$
|
The following financial data for 2003 are also available:
(1) Sales totaled $1,800,000.
(2) The gross profit margin was 25%.
(3) Inventory turnover was 6.0. was 1.20.
(4) There are 360 days in the year.
(5) The average collection period was 40 days.
(6) The current ratio was 1.60.
(7) The total asset turnover ratio
(8) The debt ratio was 60%.