Given the following information, complete the balance sheet shown next.
Collection period ........................... 71 days
Days' sales in cash .......................... 34 days
Current ratio ................................. 2.6
Inventory turnover ........................... 5 times
Liabilities to assets ........................... 75%
Payables period .............................. 36 days
(All sales are on credit. All calculations assume a 365-day year. Payables period is based on cost of goods sold.)
Assets
Current:
Cash $1,100,000
Accounts receivable
Inventory 1,900,000
Total current assets
Net fixed assets
Total assets 8,000,000
Liabilities and shareholders' equity
Current liabilities:
Accounts payable
Short-term debt
Total current liabilities
Long-term debt
Shareholders' equity
Total liabilities and equity