Presented below is an incomplete balance sheet for the Main River Corp. MAIN RIVER CORP. Balance Sheet

Question:

Presented below is an incomplete for the Main River Corp.
MAIN RIVER CORP.
Balance Sheet
December 31, 2014
Assets
Current assets
Cash ...........................................$20,000
Accounts receivable .............................. (a)
Inventory .......................................... (b)
Total current assets .........................365,000
Non-current assets ..........................435,000
Total assets ...................................... $ (c)
Liabilities and Shareholders' Equity
Current liabilities ................................. $ (d)
Non-current liabilities ............................. (e)
Total liabilities ..................................... (f)
Shareholders' equity .............................. (g)
Total liabilities and shareholders' equity...... $ (h)
Additional information:
1. Assume average balances equal ending balances for the purpose of this exercise.
2. The receivables turnover ratio is 13 times and net credit sales are $1,950,000.
3. The is 6.5 times and cost of goods sold is $1,267,500.
4. The current ratio is 2:1.
5. The debt to total assets ratio is 70%.
Instructions
Calculate the missing information using the ratios?
Inventory Turnover Ratio
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Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...