Balance Sheet Completion Using Ratios [PDF]

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Balance sheet completion using ratios Complete the 2019 balance sheet for O’keefe Industries using the information that follows its. Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets



O’keefe Industries Balance Sheet December 31, 2019 Liabilities and Stockholders’ Equity $32,720 Accounts payable 25,000 Notes payable _____(1) Accruals _____(2) Total current liabilities _____(3) Long-term debt _____(4) Stockholders’ equity $_____(5) Total liabilities and Stockholders’ Equity



The following financial data for 2019 are also available: 1. Sales totaled $1,800,000. 2. The gross profit margin was 25%. 3. Inventory turnover was 6.0. [Inventory turnover = Cost of goods sold / Inventories] 4. There are 365 days in the year. 5. The average collection period was 40 days. 6. The current ratio was 1.60. 7. The total asset turnover ratio was 1.20. 8. The debt ratio was 60%. [Debt ratio = Total liabilities / Total assets]



$120,000 _____(6) 20,000 _____(7) _____(8) $600,000 $_____(9)