Explore BrainMass

Explore BrainMass

    Ratio analysis :Pro forma balance sheet

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Use the following industry average ratios to construct a pro forma balance sheet for Carlos Menza, Inc.
    Total asset turnover 2 times

    Average collection period (assume a 365-day year) 9 days

    Fixed asset turnover 5 times

    Inventory turnover (based on cost of goods sold) 3 times

    Current ratio 2 times

    Sales (all on credit) $4.0 million

    Cost of goods sold 75% of sales

    Debt ratio 50%
    Cash _____ Current liabilities _____
    Inventory _____ Long-term debt _____
    Accounts receivable _____ Common stock plus _____
    · Net fixed assets _____ · Retained earnings _____
    · Total $_____ · Total $_____


    © BrainMass Inc. brainmass.com December 24, 2021, 7:38 pm ad1c9bdddf

    Solution Summary

    Solution showsa pro-forma balance sheet for Carlos Menza, Inc.