SIC 6. Tarheel Furniture Company is planning to establish a wholly owned subsidiary to manufacture upholstery fabrics. Tarheel expects to earn $1 million after taxes on the venture during the first year. The president of Tarheel wants to know what the subsidiary's balance sheet would look like. The president believes that it would be advisable to begin the new venture with ratios that are similar to the industry average. Tarheel plans to make all sales on credit. All calculations assume a 365-day year. In your computations, you should round all numbers to the nearest $1,000. Based upon the industry average financial ratios presented here, complete the projected balance sheet for Tarheel's upholstery subsidiary. Industry Averages Current ratio 2:1 Quick ratio 1:1 Net profit margin ratio 5% Average collection period 20 days Debt ratio 40% Total asset turnover ratio 2 times Current liabilities/stockholders' equity 20% Forecasted Upholstery Subsidiary Balance Sheet Cash Total current liabilities Accounts receivable Long-term debt Inventory Total debt Total current assets Stockholders' equity Net fixed assets Total liabilities and stockholders' equity Total assets 100 11: thin tot 40