You wish to forecast the financial statements of the Go-Broke Mosquito Farming Company. You plan to invest

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Question:

You wish to forecast the financial statements of the Go-Broke Mosquito Farming Company. You plan to invest $50,000 of your money into the company. You will be the only stockholder. You have looked in Risk Management Association’s Annual Statement Studies and found the following information about the mosquito farming industry. *** BE SURE TO READ THE QUESTION BELOW. YOU DO NOT NEED TO FILL IN THE FINANCIAL STATEMENTS. **

Liabilities Notes Payable 8.6%

Current Maturity LT Debt 3.4%

Accounts Payable 17.5%

Income Taxes Payable 0.0%

All Other Current 12.6%

Total Current Liabilities 42.1%

Long Term Debt 12.9%

Deferred Taxes 0.0%

All other Non-Current Liabilities 9.0%

Common Stock and Retained Earn. 35.9%

Total Liabilities and Equity 100%

You have also gathered the following information from Risk Management Associates about the mosquito farming industry.

Inventory to Total Assets 0.75

Sales to Total Assets 5.0

Inventory Turnover 2.0

Times Interest Earned 3.0

Using this information and the techniques we learned in class, what is your estimate of Total Assets for the Go-Broke Mosquito Farming Company? Once you have computed the total assets, you do not need to complete any other computations.