Fill in the missing values for the balance sheet below given the following infor

Question

Fill in the missing values for the balance sheet below given the following information:

Return on assets = 0.22

Debt ratio = 0.77 in both 2016 and 2017

Current ratio = 1.8 in both 2016 and 2017

Quick ratio = 1.26 in 2017, Quick ratio =1.08 in 2016

Liquidity ratio = 0.32 in 2017, Liquidity ratio = 0.24 in 2016

Mashayekhi and Meckstroth Merchandising, Inc. Balance Sheet as of September 30, 2017 (in thousands) ASSETS Current assets: 2017 2016 Cash and equivalents Short-term investments Accounts receivable Inventories Prepaid insurance 14,087 13,104 70 90 Total current assets Property, plant and equipment Accumulated depreciation PP&E; (3,905) (1,550) Net PP&E; TOTAL ASSETS $ 44,109 LIABILITIES AND OWNERS' EQUITY Current liabilities: Accounts payable Notes payable Wages payable Income tax payable $ 9,000 $ 8,400 7,600 720 35 6,100 590 30 Total current liabilities Long-term debt Other liabilities 5,663 6,652 TOTAL LIABILITIES Owners' equity: Common stock - 200 shares outstanding Capital in excess of par value Retained earnings 9,14510,115 TOTAL OWNERS' EQUITY TOTAL LIABILITIES AND OWNERS' EQUITY

Explanation / Answer

Calculations:

Mashayekhi and Meckstroth Merchandising, Inc. Balance Sheet as of September 30, 2017 (in thousands) 2017 2016 ASSETS Current assets: Cash and equivalents 5030 4021 Short-term investments 690 970 Accounts receivable 14087 13104 Inventories 8419 11974 Prepaid insurance 70 90 Total current assets 28296 30159 Property, plant and equipment 15500 15500 Accumulated depreciation - PP&E -3905 -1550 Net PP&E 11595 13950 TOTAL ASSETS 39891 44109 LIABILITIES AND OWNERS' EQUITY Current liabilities: Accounts payable 9000 8400 Notes payable 6100 7600 Wages payable 590 720 Income tax payable 30 35 Total current liabilities 15720 16755 Long-term debt 9333 10557 Other liabilities 5663 6652 TOTAL LIABILITIES 30716 33964 Owners' equity: Common stock - 200 shares outstanding 8 8 Capital in excess of par value 22 22 Retained earnings 9145 10115 TOTAL OWNERS' EQUITY 9175 10145 TOTAL LIABILITIES AND OWNERS' EQUITY 39891 44109

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