USE THE FOLLOWING INFORMATION TO CONSTRUCT A BALANCE SHEET TO ANSWER QUESTIONS

Sales	$ 2,000,000
Gross profit margin	20%
Inventory turnover ratio (Cost of goods sold/Inventory)	25
Net profit margin	4%
Average collection period	45
Return on equity	25%
Accumulated depreciation	$ 75,000
Return on assets	12.5%
Accounts payable days	18
Notes payable	$ 18,000
Gross fixed assets	$ 400,000
Percent of sales on credit (remainder are cash sales)	80%
NOTE: Assume a 360 day year for all ratios, etc.

Assume that the only accounts on the balance sheet are those listed below. Fill in this chart with the data provided and then answer questions 28, 29 and 30.

Cash:_______ Notes Payable:_______

Accounts Receivable:_______ Accounts Payable:_______

Inventory:_______ Long-term debt:_______

Gross fixed assets:_______Equity_______

(Accumulated depreciation):_______ Total liab & equity:_______

Net fixed assets: _______

Total assets: _______

1. Cash= _______

2. Long-term debt=_______

3. Total assets=_______