Problem 35: (Required, 15 points) Complete the following balance sheet using the information given. Round account balances to the nearest dollar. You are required to write down your solutions step by step, and you have opportunity to earn partial points.

Balance Sheet			Income Statement
Cash			Sales (All Credit)	$30,000
Accounts receivable			Cost of goods sold	10,000
Inventory			Operating expenses	6,000
Net fixed assets			Interest expense	100
Total assets			Taxes	1,365
			Net income	$2,530
Accounts payable
Short-term notes payable	$1,500		Ratios:
Long-term debt			Return on Equity =	15%
Common stock	$5,500		Quick Ratio =	1.2
Retained earnings			Return on Total Assets =	10%
Total Liabilities and equity			Net Fixed Asset Turnover =	1.6
			Current Ratio =	2
			Average Collection Period	45

Tips: 1. Solve for common equity using ROE=Net Income/Common Equity

2. Retained Earnings = Common Equity - Common Stock

3. Net Fixed Asset Turnover =Sales/Net Fixed Assets