We are given the following information for Pettit Corporation. Sales (cred it).....................................$3,000,000 Cash........................................................150,000 Inventory .............. . ................................850,000

Question:

We are given the following information for Pettit Corporation.

Sales (cred it).....................................$3,000,000
Cash........................................................150,000
Inventory .............. . ................................850,000
Current liabilities ........ ..... .. . .. .. . ....... .700,000
Asset turnover ................ .. .. .. . ....... . 1.25 times
Current ratio ............ ... ... . . .. .. . ....... .2.50 times
Debt-to-assets ratio ........ . ......................40%
Receivables turnover. ................................6 times

Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Calculate the following balance sheet items:
a. Accounts receivable
c. Capital assets
b. Marketable securities
d. Long-term debt.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Fantastic news! We've Found the answer you've been seeking!