Complete the following balance sheet using the information given. Round account balances to the nearest...
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Accounting
Complete the following balance sheet using the information given. Round account balances to the nearest dollar. You are required to write down your solutions step by step, and you have opportunity to earn partial points.
Balance Sheet
Income Statement
Cash
-
Sales (All Credit)
$32,000
Accounts receivable
-
Cost of goods sold
12,000
Inventory
-
Operating expenses
6,000
Net fixed assets
-
Interest expense
100
Total assets
-
Taxes
1,365
Net income
$2,530
Accounts payable
-
Short-term notes payable
$1,400
Ratios:
-
Long-term debt
-
Return on Equity =
14%
Common stock
$4,500
Quick Ratio =
1.1
Retained earnings
-
Return on Total Assets =
10%
Total Liabilities and equity
-
Net Fixed Asset Turnover =
1.6
Current Ratio =
2
Average Collection Period
45
Tips: 1. Solve for commonequity using ROE=Net Income/Common Equity
2. Retained Earnings = Common Equity - Common Stock
3. Net Fixed Asset Turnover =Sales/Net Fixed Assets
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