Complete the following balance sheet using the information given. Round account balances to the nearest

dollar.

Balance Sheet Income Statement
Cash Sales (All Credit) $20,000
Accounts receivable Cost of goods sold 10,000
Inventory Operating expenses 6,000
Net fixed assets Interest expense 100
Total assets Taxes 1,365
Net income $2,535
Accounts payable
Short-term notes payable $1,425 Ratios:
Long-term debt Profit Margin = 12.675%
Common stock $5,000 Return on Equity = 15%
Retained earnings Quick Ratio = 1.2
Total Liabilities and equity Return on Total Assets = 10%
Fixed Asset Turnover = 1.6
Current Ratio = 2
Days Sales Outstanding = 45

1. Solve for common equity using ROE: Common Equity = $16,900
2. Retained Earnings = Common Equity — Common Stock = $11,900
3. Solve for total assets using ROA: Total Assets = $25,350
4. Total Liabilities & Equity = Total Assets = $25,350
5. Solve for net fixed assets using fixed asset turnover: NFA = $12,500
6. Current Assets = Total Assets — Net Fixed Assets = $12,850
7. Solve for current liabilities using the current ratio: Current Liabilities = $6,425
8. Accounts Payable = Current Liabilities — Short-term Notes Payable = $5,000
9. Plug Long-term Debt: $2,025
10. Use the quick ratio to find inventory: Inventory = $5,140
11. Use the days sales outstanding ratio to find accounts receivable: AR = $2,466
12. Plug the cash figure: Cash = $5,244