(Pro

forma balance sheet

construction)

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

(Pro

forma balance sheet

construction)

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

Total asset turnover	1.6 times
Average collection period (assume 365-day year)	14 days
Fixed asset turnover	6 times
Inventory turnover (based on cost of goods sold)	3 times
Current ratio	1.9 times
Sales (all on credit)	$3,000,000
Cost of goods sold	75% of sales
Debt ratio	60%

.

Fill in the assets section of the pro forma balance sheet.(Round all items to the nearest dollar.)

Cash
Accounts receivable
Inventories
Net fixed assets
Total assets

.