Cash $30,000
marketable securities 25,000
Accounts Receivable 200000
Inventories 3,00,000
Current Assets 555000

Net fixed assets 9,45,000



Total Assets 1500,000

Accounts Payable $120,000
Bank Loan 2,06,875
Accruals 20,000
Current Liabilities 3,46,875
Long term debts 5,53,725
Common Stock and retained earnings 600,000
Total Liabilities and Equity 1500,000
(W-1) Inventory turnover ratio=6.0

Inventory turnover ratio= sales/average inventories
6.0= 1800, 000/ average inventories
Average inventories= 1800, 000 /6.0
Average inventories= 300,000

(W-2) Average collection Period=40 days
Average collection Period=Average Account Receivable * 360 days/ sales
40 days= Average Account Receivables*360/18, 00,000
18, 00,000*40/360 = Average Account Receivables
Avg. Account Receivables= 200,000

(W-3) Total Asset Turnover Ration=1.20
1.20= sales/Total Assets
Total Asset = sales/TAT
=18, 00,000/1.20
=15, 00,000

(W-4) Fixed assets= Total Asset- Current Asset
=15, 00,000-5, 55,000
=9, 45,000

(W-5) Current Ratio= Current asset/Current Liabilities
1.60 =5, 55, 000/CL
CL= 5, 55, 000/1.60
= 3, 46,875

(W-6) Total debt = C liabilities +Long term debts
900,000 =3, 46,875 + ?
Long term Debt = 900,000 -3, 46,875
553185

(W-7)Total debt can be find out as
Total debt= Total Liabilities and Equity- Common Stock and retained earnings
900,000 =1500, 000-600,000

(W-8) Bank Loan= Current liabilities - Accounts Payable- Accruals
206875 =3, 46,875- 120,000-20,000

Provided information in question no 3, PAPER-1, are not correct, the actual data comprises as under (SOURCE Financial Management by Gitman)
Complete the 2007 balance sheet for Premier Industries using the information that follows it.
Cash & marketable securities 55,000
Accounts Receivable
Inventories
Current Assets
Net fixed assets
Total Assets

Accounts payable $120,000
Bank Loan ?
Accruals 20,000
Current Liabilities ?
Long term debts ?
Common Stock and retained earnings 600,000
Total Liabilities and Equity ?