Using these data construct the december 31 year 2 balance

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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.

1600%

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.

Reference no: EM13480562

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