Presented below is an incomplete balance sheet for Main River Corp.

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%.

InstructionsCalculate the missing information using the ratios. Start with one ratio and get as much information as possible from it before trying another ratio. You may not be able to calculate the missing amounts in the same sequence as they are presented above.

Transcribed Image Text:

MAIN RIVER CORP. Balance Sheet December 31, 2021 Assets Current assets Cash $20,000 (a) (b) Accounts receivable Inventory Total current assets 365,000 Non-current assets 435,000 Total assets (c) Liabilities and Shareholders' Equity Current liabilities Non-current liabilities (d) (e) Total liabilities (f) Shareholders' equity Total liabilities and shareholders' equity (h)