4.28 Complete the balance sheet of Flying Roos Corporation. Assets: Flying Roos Corporation Balance Sheet as of December 31, 2014 Cash and marketable securities Accounts receivable Inventory Total current assets Net plant and equipment Total assets You have the following information: Debt ratio = 40% Current ratio = 1.5 Net sales = $2.25 million Liabilities and Equity: Accounts payable and accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings $8,000,000 Total liabilities and equity DSO = 39 days Inventory turnover ratio = 3.375 Cost of goods sold = $1.6875 million $ 300,000 $2,000,000 $1,250,000
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- Debt ratio = 40% so Total liabilities = 0.40 × Total assets = 0.40 × $8,000,000 = $3,200,000. Show more…
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