Problem 3

You are an analyst reviewing Foxx Company. The following data are available for your financial analysis (unless otherwise indicated, all data are as of December 31, Year 2):

Required:

Using these data, construct the December 31, Year 2, balance sheet for your analysis.

(Hint: Current assets consist of cash, accounts receivable, and inventory. Balance sheet classifications include cash, accounts receivable, inventory, total noncurrent assets, total current assets, total current liabilities, total noncurrent liabilities, and equity.)

2 36 days Current ratio Accounts receivable turnover Beginning accounts receivable Return on end-of-year common equity Sales (all on credit) 16 $50,000 20% $1,000,000 Days' sales in inventory Gross profit margin ratio Expenses (excluding cost of goods sold) Total debt to equity ratio Noncurrent assets 50% $450,000 1 $300,000