Presented below is an incomplete balance sheet for the Main River Corp.
MAIN RIVER CORP.
Balance Sheet
December 31, 2014
Assets
Current assets
Cash ...........................................$20,000
Accounts receivable .............................. (a)
Inventory .......................................... (b)
Total current assets .........................365,000
Non-current assets ..........................435,000
Total assets ...................................... $ (c)
Liabilities and Shareholders' Equity
Current liabilities ................................. $ (d)
Non-current liabilities ............................. (e)
Total liabilities ..................................... (f)
Shareholders' equity .............................. (g)
Total liabilities and shareholders' equity...... $ (h)
Additional information:
1. Assume average balances equal ending balances for the purpose of this exercise.
2. The receivables turnover ratio is 13 times and net credit sales are $1,950,000.
3. The inventory turnover ratio is 6.5 times and cost of goods sold is $1,267,500.
4. The current ratio is 2:1.
5. The debt to total assets ratio is 70%.
Instructions
Calculate the missing information using the ratios?