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    Building a Balance Sheet Using Ratios

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    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

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    Solution Summary

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