Use the following industry average ratios to construct a pro forma balance sheet for Carlos Menza, Inc.
Total asset turnover - 1.6 times
Average collection period (assume a 365-day year) - 8.8 days
Fixed asset turnover - 5.1 times
Inventory turnover (based on cost of goods sold) - 3.2 times
Current ratio - 1.8 times
Sales (all on credit) - $4.26 million
Cost of goods sold - 70% of sales
Debt ratio - 47%
1. The company's total assets are $___________(round to the nearest dollar)
2. The company's fixed assets are $___________(round to the nearest dollar)
3. The company's accounts receivable is $___________(round to the nearest dollar)
4. The company's inventories are $___________(round to the nearest dollar)
5. The company's current liabilities are $___________(round to the nearest dollar)
6. The company's total liabilities are $___________(round to the nearest dollar)
7. Pro Forma Balance Sheet
Cash _____ Current liabilities _____
Inventory _____ Long-term debt _____
Accounts receivable _____ Common stock plus _____
Net fixed assets _____ Retained earnings _____
Total $ _____ Total $ _____