Starborn Company has just been established as a new company to manufacture furniture. The company expects to earn $1 million after-taxes during its first year. The company president has asked for a projected balance sheet based on ratios similar to the industry average.

Assuming all sales are made on credit, calculations utilize a 365-day year, and final numbers are rounded to the nearest thousand, prepare a projected balance sheet for Starborn based on the following industry ratios:

Current ratio, 2:1

Quick Ratio, 1:1

Net Profit Margin Ratio, 10%

Average collection period, 20 days

Debt ratio, 40%

Total asset turnover ratio, 2 times

Current Liabilities/ Stockholders equity, 20%

Create balance sheet.