Problem 39: (Required, 15 points) Complete the following balance sheet using the information given. Round account balances to the nearest dollar. You are required to write down your solutions step by step, and you have opportunity to earn partial points. Balance Sheet Income Statement 6,000 Cash Sales (All Credit) $30,000 Accounts receivable Cost of goods sold 10,000 Inventory Operating expenses Net fixed assets Interest expense 100 Total assets Taxes 1,365 Net income $2,530 Accounts payable Short-term notes payable $1,400 Ratios: Long-term debt Return on Equity = 15% Common stock $5,000 Quick Ratio = Retained earnings Return on Total Assets = 10% Total Liabilities and Net Fixed Asset equity Turnover = 1.6 Current Ratio = 2 Average Collection Period Tips: 1. Solve for common equity using ROE=Net Income/Common Equity 2. Retained Earnings = Common Equity - Common Stock 3. Net Fixed Asset Turnover =Sales/Net Fixed Assets