Question
Using ratios to construct financial statements. Construct the current assets section of the balance sheet from the following data. (Use cash as a plug figure
Using ratios to construct financial statements. Construct the current assets section of the balance sheet from the following data. (Use cash as a plug figure after computing the other values.)
Yearly sales (credit)..................................................................... $420,000
Inventory turnover....................................................................... 7 times
Current liabilities.......................................................................... $80,000
Current ratio................................................................................. 2
Average collection period............................................................ 36 days
Current assets: $
Cash........................................................................ ______
Accounts receivable................................................ ______
Inventory................................................................ ______
Total current assets............................................. ______
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