Question: Show changes to the 2012 pro forma balance sheet assuming the company borrows the necessary funds for the capital improvements at an interest rate of
Show changes to the 2012 pro forma balance sheet assuming the company borrows the necessary funds for the capital improvements at an interest rate of 7 percent. Thats all the information I was giving. Trying to show what the interest rate of 7%
| Assets | Calculations | Liabilities and Owners Equity | Calculations |
| Cash and Marketable Securities | Notes payable | ||
| Accounts Receivable | Accounts payable | ||
| Inventory | Accrued expenses | ||
| Current Assets | Current liabilities | ||
| Gross Fixed Assets | Long-term debt | ||
| Accumulated Depreciation | Common Stock ($10 par) | ||
| Net fixed assets | Retained earnings | ||
| Total assets | Total liabilities and owners equity |
| Price earnings ratio | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| current ratio | 1.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| quick ratio | 0.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| total debt ratio | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| total asset turnover ratio | 1.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| return on equity | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| return on sales | 2.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average collection period | 27
|
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