Fin370 Corporate Finance: 4-5A. Pro forma balance sheet construction

Fin370 Corporate Finance
4-5A. Pro forma balance sheet construction
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) 4,000,000
Cost of goods sold (75% of sales) 3,000,000
Debt ratio 50%
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