(Constructing a pro forma balance sheet) Use the following industry average ratios,

to construct a pro forma balance sheet, for Mendoza Distributors, Inc.

Total asset turnover - 2.3 times

Average collection period (assume a 365-day year) 9.4 days

Fixed asset turnover 4.5 times

Inventory turnover (based on cost of goods sold) 2.7 times

Current ratio 2.2 times

Sales (all on credit) $4.19 million

Cost of goods sold 71 % of sales

Debt ratio 52 %

Pro Forma Balance Sheet

Cash -

Accounts Receivable -

Inventory -

Net fixed assets -

Total -

Current Liabilities -

Long Term Debt -

Total Liablities -

Common Equity -

Total -