(3–11)

Balance Sheet Analysis Complete the balance sheet and sales information in the table that follows for Hoffmeister Industries using the following financial data:

Debt ratio: 50%

Quick ratio: 0.80 Total assets turnover: 1.5 Days sales outstanding: 36.5 daysa Gross profit margin on sales: (Sales – Cost of goods sold)/Sales = 25%

Inventory turnover ratio: 5.0 aCalculation is based on a 365-day year.

Balance Sheet Cash Accounts payable Accounts receivable Long-term debt 60,000 Inventories Common stock Fixed assets Retained earnings 97,500 Total assets $300,000 Total liabilities and equity Sales Cost of goods sold