Assume you are an analyst evaluating Mesco Company. The following data are available in your financial analysis (unless otherwise indicated, all data are as of December 31, Year 5):

Retained earnings, December 31, Year 4 . . . . . $98,000

Gross profit margin ratio . . . . . . . . . . . . . . . . . 25%

Acid-test ratio . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 to 1

Noncurrent assets . . . . . . . . . . . . . . . . . . . . . . $280,000

Days’ sales in inventory . . . . . . . . . . . . . . . . . . 45 days

Days’ sales in receivables . . . . . . . . . . . . 18 days

Shareholders’ equity to total debt . . . . . . 4 to 1

Sales (all on credit) . . . . . . . . . . . . . . . . . $920,000

Common stock: $15 par value; 10,000 shares issued and outstanding; issued at $21 per share

Required:

Using these data, construct the December 31, Year 5, balance sheet  for your analysis. Operating expenses (excluding taxes and cost of goods sold for Year 5) are $180,000. The tax rate is 40%.

Assume a 360-day year in ratio computations. No cash dividends are paid in either Year 4 or Year 5. Current assets consist of cash, accounts receivable, and inventories.