Question
Using ratios to construct financial statements. Please show your calculations as outlined in the text. The following information is from Harrelson, Inc.s, financial statements. Sales
Using ratios to construct financial statements. Please show your calculations as outlined in the text. The following information is from Harrelson, Inc.s, financial statements. Sales (all credit) were $20 million for 2010.
Sales to total assets........................................ 2 times
Total debt to total assets................................ 30%
Current ratio................................................... 3.0 times
Inventory turnover......................................... 5.0 times
Average collection period.............................. 18 days
Fixed asset turnover....................................... 5.0 times
Fill in the balance sheet by using the ratios:
Cash.................................... ______ Current debt.......................................... ______
Accounts receivable............ ______ Long-term debt..................................... ______
Inventory............................ ______ Total debt............................................ ______
Total current assets........... ______ Equity................................................... ______
Fixed assets......................... ______ Total debt and equity.......................... ______
Total assets........................ ______
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