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) $32,000 Accounts receivable Cost of goods sold 12,000 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 $1,400 Ratios: Long-term debt Return on Equity - 14% Accounts payable Short-term notes Net income $2,530 payable $1,400 Ratios: Long-term debt Return on Equity = 14% Common stock $4,500 Quick Ratio= 1.1. 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