PROBLEM 1–6 You are an analyst reviewing Foxx Company. The following data are av

PROBLEM 1–6 You are an analyst reviewing Foxx Company. The following data are available for your financial
analysis (unless otherwise indicated, all data are as of December 31, Year 2):
Current ratio . . . . . . . . . . . . . . . . . . . . . . . 2 Days’ sales in inventory . . . . . . . . . . . . . . . . 36 days
Accounts receivable turnover . . . . . . . . . . 16 Gross profit margin ratio . . . . . . . . . . . . . . . 50%
Beginning accounts receivable . . . . . . . . . $50,000 Expenses (excluding cost of goods sold) . . . $450,000
Return on end-of-year common equity . . . 20% Total debt to equity ratio . . . . . . . . . . . . . . . 1
Sales (all on credit) . . . . . . . . . . . . . . . . . $1,000,000 Noncurrent assets . . . . . . . . . . . . . . . . . . . . $300,000
Required:
Using these data, construct the December 31, Year 2, balance sheet for your analysis. Current assets consist of cash, accounts receivable, and inventory. Balance sheet classifications include cash,
accounts receivable, inventory, total noncurrent assets, total current assets, total current liabilities,
total noncurrent liabilities, and equity.
Understanding Financial
Statement Relations:
Balance Sheet
Construction
CHECK
Total assets, $500,000
Subramanyam, K.R.; Wild, John (2013-05-24). Financial Statement Analysis (Page 54). McGraw-Hill Education. Kindle Edition.

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