QuestionST3-2 Balance sheet completion using ratios Complete the 2015 balance sheet for O'Keefe Industries using the information that follows it. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{O'Keefe Industries Balance Sheet December 31, 2015} \\ \hline Assets & & Liabilities and Stockholders' Equity & \\ \hline Cash & \$32,720 & Accounts payable & \$120,000 \\ \hline Marketable securities & 25,000 & Notes payable & \\ \hline Accounts receivable & & Accruals & 20,000 \\ \hline Inventories & & Total current liabilities & \\ \hline Total current assets & & Long-term debt & \\ \hline Net fixed assets & & Stockholders' equity & \$600,000 \\ \hline Total assets & \$ & Total liabilities and stockholders' equity & \$ \\ \hline \end{tabular}
2 Financial Tools
The following financial data for 2015 are also available:
1. Sales totaled $\$ 1,800,000$.
2. The gross profit margin was $25 \%$.
3. Inventory turnover was 6.0.
4. There are 365 days in the year.
5. The average collection period was 40 days.
6. The current ratio was 1.60 .
7. The total asset turnover ratio was 1.20 .
8. The debt ratio was $60 \%$.

Studdy Solution
Complete the balance sheet by calculating missing values:
- Notes Payable: $\text{Total Current Liabilities} - \text{Accounts Payable} - \text{Accruals} = 140,000 - 120,000 - 20,000 = 0$ - Total Current Liabilities: $140,000$ - Long-term Debt: $\text{Total Liabilities} - \text{Total Current Liabilities} = 900,000 - 140,000 = 760,000$ - Total Liabilities and Stockholders' Equity: $1,500,000$
The completed balance sheet is:
\begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{O'Keefe Industries Balance Sheet December 31, 2015} \\ \hline Assets & & Liabilities and Stockholders' Equity & \\ \hline Cash & \$32,720 & Accounts payable & \$120,000 \\ \hline Marketable securities & 25,000 & Notes payable & 0 \\ \hline Accounts receivable & \$197,260.27 & Accruals & 20,000 \\ \hline Inventories & \$225,000 & Total current liabilities & \$140,000 \\ \hline Total current assets & \$224,000 & Long-term debt & \$760,000 \\ \hline Net fixed assets & & Stockholders' equity & \$600,000 \\ \hline Total assets & \$1,500,000 & Total liabilities and stockholders' equity & \$1,500,000 \\ \hline \end{tabular}