Complete the following balance sheet using the information given. Round account balances to the nearest...
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Accounting
Complete the following balance sheet using the information given. Round account balances to the nearest dollar. You are required to write down your solutions step by step, and you have opportunity to earn partial points.
| Balance Sheet | Income Statement | |||
| Cash | - | Sales (All Credit) | $32,000 | |
| Accounts receivable | - | Cost of goods sold | 12,000 | |
| Inventory | - | Operating expenses | 6,000 | |
| Net fixed assets | - | Interest expense | 100 | |
| Total assets | - | Taxes | 1,365 | |
| Net income | $2,530 | |||
| Accounts payable | - | |||
| Short-term notes payable | $1,400 | Ratios: | - | |
| Long-term debt | - | Return on Equity = | 14% | |
| Common stock | $4,500 | Quick Ratio = | 1.1 | |
| Retained earnings | - | Return on Total Assets = | 10% | |
| Total Liabilities and equity | - | Net Fixed Asset Turnover = | 1.6 | |
| Current Ratio = | 2 | |||
| Average Collection Period | 45 |
Tips: 1. Solve for commonequity using ROE=Net Income/Common Equity
2. Retained Earnings = Common Equity - Common Stock
3. Net Fixed Asset Turnover =Sales/Net Fixed Assets
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