Reference no: EM132700613

Problem 1: Following is information for Swift Inc. All information pertains to fiscal 2019 unless otherwise stated. Use the information to prepare the balance sheet for Swift Inc. as of December 31, 2019.

1. Retained earnings at December 31, 2018 is $234,000
2. Sales (all credit sales) are $2.5 million
3. Days to sell inventory is 20
4. Cash on hand is 1% of sales
5. All sales are paid 30 days after purchase
6. Noncurrent assets are $1 million
7. Long-term debt to equity ratio is 1
8. All liabilities, other than long-term debt, are short-term liabilities
9. 20,000 shares outstanding issued at $10 in 2018
10. No dividends are paid
11. Gross margin is 40%
12. Net profit margin is 8%
13. Assume there are 360 days in the year