Use the following industry-average ratios to construct a pro forma balance sheet for Karens Beauty Products, Inc.

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Use the following industry-average ratios to construct a pro forma balance sheet for Karen’s Beauty Products, Inc.

Total asset turnover 2.0 times Average collection period (assume 365-day year) 30 days Fixed asset turnover 5 times Inventory turnover (based on cost of goods sold) 4 times Current ratio 2.5 times Sales (all on credit) $12 million Cost of goods sold 80% of sales Debt ratio 40% Current liabilities

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Foundations Of Finance

ISBN: 9780135160619

10th Edition

Authors: Arthur J. Keown, John H. Martin, J. William Petty

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