Problem 5 Using the data provided complete the following projected Balance Sheet for Mumford Inc. as of and for the year ended December 31, 2020. Credit (and total) sales were $2,100,000. (Type in your values)) The long term debt is all interest bearing. The total stockholders equity is a combination of issued common stock and retained earnings.

Total asset turnover 2.4 times

Cash to total assets 2%

Accounts receivable turnover 8.0 times

Inventory turnover 10.0 times

Current ratio 2.0 / 1.0

Debt to total assets 61%

Assets Liabilities

Cash Current Debt

Accounts Receivable Long Term Debt

Inventory Total Debt

Total Current Assets

Stockholders Equity

Fixed Assets (net of depr) Total Stockholders Equity

TOTAL ASSETS TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

Problem 5 continued Mumford Inc. is using a combination of debt and equity in its capital structure. Identify two specific pros and two specific cons of each form of capital (interest bearing debt and issued common stock) and reflect upon (briefly discuss) what makes the item you identified either a pro or a con. The remaining space on this page should be plenty of room for an effective answer.