Average ratios to construct a pro forma balance sheet

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Reference no: EM13808713

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 $ _____

Reference no: EM13808713

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