Explore BrainMass

Building a Balance Sheet Using Ratios

Complete the balance sheet of Flying Roos Corporation. Please refer to the attached document.

Flying Roos Corporation
Balance Sheet as of December 31,2011
Liabilities and Equity:
Cash and marketable securities
Accounts payable and accruals
Accounts receivable
Notes payable 300,000
Total current assets
Total current liabilities

Long-term debt 2,000,000
Net plant and equipment
Common stock

Retained earnings $ 1,250,000
Total assets $ 8,000,000
Total liabilities and equity
You have the following information:
Debt ratio = 40.00%
DSO = 39 days
Current ratio = 1.5
Inventory turnover ratio = 3.375
Sales = $2,250,000
Cost of goods sold-$1.6875 million


Solution Summary

This solution illustrates how to build a balance sheet using common financial ratios and relationships.