Pro forma balance sheet, given credit sale, ave. ratios for

[ajmom88]

Given sales (all credit) 450,000 and given average ratios for the industry. Need to complete a balance sheet & I am lost at how this can be done. I assume I back into my figures but nothing seems to click.

Can someone help

 

[stapel]

Please provide the full and exact text of the exercise and its instructions, along with a complete listing of the methods, rules, formulas, and / or assumptions you are required to use. Or, if you are saying that you need first to learn how to do this sort of thing, please specify that you are seeking links to sites or lessons that may help.

Thank you!

 

[ajmom88]

This is the entire problem

Jet Services is a new company specializing in delivery services to the cities located east of the Mississippi.In attempting to determine what the financial position of the firm should be, the financial manager obtained the following average ratios for the delivery services for 2004:

Common equity to total assets – 60%
Total asset turnover = 3 times
Long term debt to total capitalization = 25%
Current ration = 1.2
Quick ratio = .75

Average collection period (360 days year) = 10 days

Complete the accompanying pro forma balance sheet for Frog Hollow Bakery assuming 2005 sales (all credit) are $450,000.

Jet Services
Pro Forma Balance Sheet
December 31, 2005

Cash
Accounts Receivable
Inventory
Total Current Assets
Fixed Assets
Total Assets

Current Debt
Long term debt
Common Equity
Total Liabilities and equity

 

[ajmom88]

I know I can do this if I am given some guidance at where to begin. This type was never explained in class & I can not find anything in the book detailed enough to give me that jump start I need. I am very capable of doing the calculations once I know where to start to get the first one.ajmom88
New Member

 

[mmm4444bot]

Please check to be sure that you have not mixed together here information from two different exercises.

I do not understand the working relationship between Jet Services and Frog Hollow Bakery.

 

[ajmom88]

Sorry, I was working on another problem which had to do with Frog Hollow Bakery and inadverately typed that name there. It should read Jet Services.

 

[Denis]

Looks to me like you need an accountant, mom.

Have you tried to find accounting sites using google?

 

[ajmom88]

Just thought since it was for my finance class I would ty the Finance help side. I will find another source to help me with this problem
Thank you