Question
Use the following industry average ratios, to construct a pro forma balance sheet, for Mendoza Distributors, Inc. The company's cost of goods sold is $
Use the following industry average ratios, to construct a pro forma balance sheet, for Mendoza Distributors, Inc. The company's cost of goods sold is $ nothing. (Round to the nearest dollar.) The company's total assets are $ nothing. (Round to the nearest dollar.) The company's fixed assets are $ nothing. (Round to the nearest dollar.) The company's accounts receivable is $ nothing. (Round to the nearest dollar.) The company's inventories are $ nothing. (Round to the nearest dollar.) The company's current liabilities are $ nothing. (Round to the nearest dollar.) The company's total liabilities are $ nothing. (Round to the nearest dollar.) Complete Mendoza Distributors' balance sheet below:(Round to the nearest dollar.)
Total asset turnover | 2.4 times |
|
Average collection period (assume a 365-day year) | 8.5 days | |
Fixed asset turnover | 5.3 times | |
Inventory turnover (based on cost of goods sold) | 2.8 times | |
Current ratio | 2.2 times | |
Sales (all on credit) | $3.61 million | |
Cost of goods sold | 79% of sales | |
Debt ratio | 53% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started