Question
Use the following industry-average ratios to construct a pro forma balance sheet for Phoebe's Cat Foods Inc.: Total asset turnover 1.5 times Average collection period
Use the following industry-average ratios to construct a pro forma balance sheet for Phoebe's Cat Foods Inc.:
Total asset turnover 1.5 times Average collection period (assume 365-day year) 15 days Fixed asset turnover 5 times Inventory turnover (based on cost of goods sold) 3 times Current ratio 2.0 times Sales (all on credit) $3,000,000 Cost of goods sold 75% of sales Debt ratio 50%
Fill in the assets section of the pro forma balance sheet.
Cash $ _ _ _ _
Accounts Receivable $ _ _ _ _
Inventories _ _ _ _
Net fixed assets _ _ _ _
_________________________________________________________
Total assets $ _ _ _ _
__________________________________________________________
Fill in the liabilities and common equity section of the pro forma balance sheet.
Current liabilities $ _ _ _ _
Long-term debt _ _ _ _
Total liability _ _ _ _
Common equity _ _ _ _
Total liabilities and common equity $ _ _ _ _
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started