| WORKSHEET FOR TARHEEL FURNITURE COMPANY |
| PART I: Determining Balance Sheet Items From Financial Ratios |
| Net profit margin ratio = |
| Earnings after taxes | | $1,000,000 |
| - | = | - | = | 5.00% |
| Sales | | Sales |
| Sales | = |
| Total asset turnover ratio = |
| Sales | | $0 |
| - | = | - | = | 2.00 |
| Total assets | | Total assets |
| Total assets | = |
| Debt ratio = |
| Total debt | | Total debt |
| - | = | - | = | 40.00% |
| Total assets | | $0 |
| Total debt | = | $0 |
| Stockholders' equity | = |
| Current liabilities to stockholders' equity ratio = |
| Current liabilities | | Current liabilities |
| - | = | - | = | 20.00% |
| Stockholders' equity | | $0 |
| Current liabilities | = | $0 |
| Long-term debt | = | $0 |
| Current ratio = |
| Current assets | | Current assets |
| - | = | - | = | 2.00 |
| Current liabilities | | $0 |
| Current assets | = | $0 |
| Net fixed assets | = |
| Quick ratio = |
| Current assets - inventory | | $2,400,000 - inventory |
| - | = | - | = | 1.00 |
| Current liabilities | | $0 |
| Inventory | = | $0 |
| Average collection period ratio = |
| Accounts receivable | | Accounts receivable |
| - | = | - | = | 20.00 |
| Annual credit sales/365 | | $0 |
| Accounts receivable | = | $0 |
| Cash | = |
| PART II: Forecasted Upholstery Subsidiary Balance Sheet |
| PROJECTED BALANCE SHEET |
| ASSETS |
| Cash | | $0 |
| Accounts receivable | | 0 |
| Inventory | | 0 |
| | | --------------------- |
| Total current assets | | $0 |
| Net fixed assets | | 0 |
| | | --------------------- |
| Total assets | | $0 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
| Total current liabilities | | $0 |
| Long-term debt | | 0 |
| Total debt | | $0 |
| Stockholders' equity | | 0 |
| | | - |
| Total liabilities and equity | | $0 |
m.wucoud
cfm0306p.xls
