1. Using the following information, complete this balance sheet: Long-term debt to net worth 0.5 to 1 Total asset turnover 2.5 x Average collection period* 18 days Inventory turnover 9 x Gross profit margin 10% Acid-test ratio 1 to 1 *Assume a 360-day year and all sales on credit Particulars Amount() Particulars Amount() Cash Notes and payables 1,00,000 Accounts receivable Long-term deb -- Inventory Common stock 1,00,000 Plant and equipment Retained earnings 1,00,000 Total assets Total liabilities and equity-.. 2. MNP Limited has made plans for the next year 2015- 16. It is estimated that the company will employ total assets of " 25,00,000; 30% of assets being financed by debt at an interest of 9% p.a. The direct costs for the year are estimated at 15,00,000 and all other operating expenses are estimated at 2,40,000. The sales revenue are estimated at 22,50,000. Tax rate is assumed to be 40%. Required to calculate: Net Profit Margin (After Tax); (ii) (ii) Return on Assets (After Tax); (iii) (ii) Assets Turnover, and (iv) (iv) Return on Equity. 3. The total sales (all credit) of a firm are 6,40,000. It has a gross profit margin of 15 per cent and a current ratio of 2.5. The firm's current liabilities are '96,000; inventories 48,000 and cash 16,000. (a) Determine the average inventory to be carried by the firm, if an inventory turnover of 5 times is expected? (Assume a 360 day year). (b) Determine the average collection period if the opening balance of debtors is intended to be of 80,000? (Assume a 360 day year)