11) Complete the following balance sheet using the information given. Round account balances to the nearest dollar. Balance Sheet Cash Income Statement Sales (All Credit) $20,000 Accounts receivable Cost of goods sold 10,000 Inventory Net fixed assets Operating expenses 6,000 Interest expense 100 Taxes Net income 1,365 $2,535 Total assets Accounts payable Short-term notes payable $1,425 Ratios: Long-term debt Profit Margin= = Common stock $5,000 Return on Equity = Retained earnings Quick Ratio Total Liabilities and equity 12.675% 15% 1.2 = 10% 1.6 2 = 45 1. 2. 3. = Return on Total Assets Fixed Asset Turnover = Current Ratio = Days Sales Outstanding: Solve for common equity using ROE: Common Equity = $16,900 Retained Earnings = Common Equity - Common Stock = $11,900 Solve for total assets using ROA: Total Assets = $25,350 4. Total Liabilities & Equity = Total Assets = $25,350 5. 6. - Solve for net fixed assets using fixed asset turnover: NFA = $12,500 Current Assets = Total Assets Net Fixed Assets = $12,850 7. Solve for current liabilities using the current ratio: Current Liabilities = $6,425 8. Accounts Payable = Current Liabilities - Short-term Notes Payable = $5,000 9. Plug Long-term Debt: $2,025 10. Use the quick ratio to find inventory: Inventory = $5,140 11. Use the days sales outstanding ratio to find accounts receivable: AR = $2,466 12. Plug the cash figure: Cash = $5,244 12) How could an analyst determine whether a company's ratio is good or bad? 3