19. Companies often use ratios as a basis for planning. The technique is to assume the business being planned will achieve targeted levels of certain ratios and then calculate the financial statement amounts that will result in those ratios. The process always starts with a dollar assumption about sales revenue. Forecast the balance sheet for Lambert Co. using the following projected information ($000). Round all projections to the nearest thousand dollars.

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Sales $10,000 Cash $500 Accruals $50 Gross margin 45% ACP 42 days Inventory turns 7.0 Total asset turnover 1.25x Current ratio 2.0 Debt: equity 1:3 ASSETS LIABILITIES Cash Accounts receivable Inventory Current assets Net fixed assets Total assets Accounts payable Accruals Current liabilities Debt Equity Total liabilities & equity