Constructing a pro forma balance sheet) Use the following industry average ratios, Distributors, Inc. C to construct a pro forma balance sheet, for Mendo

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
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Problem 5PA: Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to...
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financial management ch 17 hw

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question 3

 

(Constructing a pro forma balance sheet) Use the following industry average ratios,
Distributors, Inc.
D
The company's cost of goods sold is $2129412. (Round to the nearest dollar.)
to construct a pro forma balance sheet,
for Mendoza
Transcribed Image Text:(Constructing a pro forma balance sheet) Use the following industry average ratios, Distributors, Inc. D The company's cost of goods sold is $2129412. (Round to the nearest dollar.) to construct a pro forma balance sheet, for Mendoza
Data table
Total asset turnover
Average collection period (assume a 365-day
year)
Fixed asset turnover
Inventory turnover (based on cost of goods sold)
Current ratio
1.7 times
9.2 days
5.3 times
3.2 times
1.9 times
$3.62 million
79% of sales
55%
Sales (all on credit)
Cost of goods sold
Debt ratio
(Click on the icon in order to copy its contents into a spreadsheet.)
I
Transcribed Image Text:Data table Total asset turnover Average collection period (assume a 365-day year) Fixed asset turnover Inventory turnover (based on cost of goods sold) Current ratio 1.7 times 9.2 days 5.3 times 3.2 times 1.9 times $3.62 million 79% of sales 55% Sales (all on credit) Cost of goods sold Debt ratio (Click on the icon in order to copy its contents into a spreadsheet.) I
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