Q2. Merve plans to start a bookstore business. She has obtained the industry ratios to prepare...

  

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Q2. Merve plans to start a bookstore business. She has obtained the industry ratios to prepare the balance sheet and forecasted a net income of $140,000. Complete the balance sheet using the ratios given and interpret briefly the performance for the first year. Merve bookstore company Proforma Balance sheet for the year ended December 31, 2021, Liability&sh's equity t. current liabilities long term debt. total debt net profit Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Equity Tot.liab, and Sh's eq. current ratio: 1.6 Collection period: 58 days. inventory turn:6(based on sales) current liab.to equity: 0.4 total debt to total equity: 1 ROE: 0.1 net profit margin: 0.05 Q2. Merve plans to start a bookstore business. She has obtained the industry ratios to prepare the balance sheet and forecasted a net income of $140,000. Complete the balance sheet using the ratios given and interpret briefly the performance for the first year. Merve bookstore company Proforma Balance sheet for the year ended December 31, 2021, Liability&sh's equity t. current liabilities long term debt. total debt net profit Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Equity Tot.liab, and Sh's eq. current ratio: 1.6 Collection period: 58 days. inventory turn:6(based on sales) current liab.to equity: 0.4 total debt to total equity: 1 ROE: 0.1 net profit margin: 0.05

Answer rating: 100% (QA)

Net income is 140000 Net profit margin 005 Thus Revenue is 140000005 2800000 Inventory turnover is 6 ... View the full answer