2) You want to buy a place to live soon after graduation. You can purchase a small place for $350,000. You will need a 20% down payment. How much should you put into an account earning 3% per year in order that you will have the necessary down payment in 7 years time?

Multiple Choice

• $37,652.36

Your task is to work backwards, using the ratios, to fill in the missing information on the financial statements. Once you have completed the Income Statement and Balance Sheet, go to Connect and fill in the requested information. IMPORTANT NOTE: use formulas to derive all the numbers in the Income Statement and the Balance Sheet. Also, when using the ratios, copy and paste the entire value of the ratios to the last decimal place provided in the cell in order to get the correct answers (there still might be some rounding)

What is the correct value for Net Fixed Assets?

• $41,754.25

• $23,633.87

• $40,654.58

Balance Sheet
December 31, 2021
Current Assets			Current Liabilities
Cash	$25,000.00		Accounts Payable	$280,000.00
Accounts Receivable			Notes Payable	335,000.00
Inventory			Other Current Liabilities	1,158,400.00
Other Current Assets	759,300.00
Total Current Assets			Total Current Liabilities
Net Fixed Assets			Long Term Debt
			Total Debt
			Common Stock	1,647,950.00
			Retained Earnings	770,950.00
			Total Equity
Total Assets			Total Liabilities & Shareholders' Equity