Preparing a Balance Sheet and Ratio Analysis
Given the following data:
|
2001 |
2000 |
|
|
Cash |
$ 30,000 |
$ 40,000 |
|
Retained earnings |
175,000 |
225,000 |
|
Current liabilities |
17,000 |
16,000 |
|
Invested capital |
600,000 |
600,000 |
|
Accounts receivable |
27,500 |
38,000 |
|
Inventories |
45,000 |
47,000 |
|
Fixed assets, net |
? |
? |
Required
a. Rearrange these data into classified balance sheets.
b. Find the missing Fixed Assets amounts necessary to balance each balance sheet.
c. Evaluate the firm’s liquidity, using the ratios described in this chapter.
d. Calculate the firm’s asset management and debt management ratios. Evaluate the results.