Given the following information, complete the balance sheet shown next.

Collection period 71 days Days’ sales in cash 34 days Current ratio 2.6 Inventory turnover 5 times Liabilities to assets 75%

Payables period 36 days

(All sales are on credit. All calculations assume a 365-day year. The payables period is based on cost of goods sold.)

Assets Current assets:

Cash $1,100,000 Accounts receivable Inventory 1,900,000 Total current assets Net fixed assets Total assets 8,000,000 Liabilities and shareholders’ equity Current liabilities:

Accounts payable Short-term debt Total current liabilities Long-term debt Shareholders’ equity Total liabilities and equity LO.1