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Use the following industry-average ratios to construct a pro forma balance sheet for Phoebe’s Cat Foods Inc.:
Total asset turnover 1.5 timesAverage collection period (assume 365-day year) 15 daysFixed asset turnover 5 timesInventory turnover (based on cost of goods sold) 3 timesCurrent ratio 2.0 timesSales (all on credit) $3,000,000Cost of goods sold 75% of salesDebt ratio 50%
Fill in the assets section of the pro forma balance sheet.
Cash $ _ _ _ _
Accounts Receivable $ _ _ _ _
Inventories _ _ _ _
Net fixed assets _ _ _ _
_________________________________________________________
Total assets $ _ _ _ _
__________________________________________________________
Fill in the liabilities and common equity section of the pro forma balance sheet.
Current liabilities $ _ _ _ _
Long-term debt _ _ _ _
Total liability _ _ _ _
Common equity _ _ _ _
Total liabilities and common equity $ _ _ _ _
Fill in the assets section of the pro forma balance sheet.CashAccounts ReceivableInventoriesNet fixed assetsTotal assets 526,712.33123,287.67750,000.00600,000.002,000,000.00 Fill in the…
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