The following is the initial Proforma Balance Sheet for Hearn Inc. before targeting industry averages:

Proforma Balance Sheet
Assets
Cash	23,018.74
Accounts receivable	58,610.04
Inventories	116,525.79
Total Current	198,154.58
Net plant	90,020.00
Total assets	288,174.58
Liabilities and Capital
Accounts payable	31,341.53
Other current liabilities	41,737.96
Total current liabilities	73,079.49
Long-term debt	36,040.00
Deferred taxes	7,140.00
Total liabilities	116,259.49
Common Stock	50,000.00
Retained Earnings	97,497.33
Total Liabilities and Equity	263,756.82
EFN TO BALANCE	24,417.76

Question 7

If Hearn Inc. wants to target the current ratio to the industry average of 3.00 and debt to asset ratio of 0.40, how much is the current debt portion of the EFN? (Not multiple choice; calculation is needed)

Question 8

If Hearn Inc. wants to target the current ratio to the industry average of 3.00 and debt to asset ratio of 0.40, how much is the long term debt portion of the EFN? (not multiple choice; calculation needed)

Question 9

If Hearn Inc. wants to target the current ratio to the industry average of 3.00 and debt to asset ratio of 0.40, how much is the equity portion of the EFN? (not multiple choice; calculation needed)