You are given the balance sheet and sales information for Hoffmeister Industries:

Cash ? Accounts payable? Accounts receivable? Long-term debt 120,000 Inventories ? Common stock ? Fixed assets ? Retained earnings 195,000 Total assets $600,000 Total liabilities ? and equity Sales Cost of Goods Sold (COGS)

• Debt ratio: 50% • Quick ratio: 0.80 • Total assets turnover: 1.5 • DSO (Days sales outstanding): 36.5 (based on 365 days) • Gross profit margin on sales (Sales – COGS)/Sales = 25% • Inventory turnover ratio: 5.0

Total debt = a. 250,000 b. 290,000 c. 420,000 d. 300,000 e. None of the above

Accounts payable = a. 180,000 b. 220,000 c. 230,000 d. 250,000 e. None of the above

Common stock = a. 100,000 b. 105,000 c. 110,000 d. 115,000 e. None of the above

Sales = a. 700,000 b. 750,000 c. 800,000 d. 900,000 e. None of the above

Accounts receivable = a. 70,000 b. 80,000 c. 85,000 d. 95,000 e. None of the above

Inventory = a. 145,000 b. 139,000 c. 135,000 d. 142,000 e. None of the above

Cash + A/R = a. 52,000 b. 54,000 c. 56,000 d. 57,000 e. None of the above

Fixed assets = a. 270,000 b. 276,000 c. 279,000 d. 280,000 e. None of the above

The C.O.G.S. (cost of goods sold) = a. 650,000 b. 660,000 c. 675,000 d. 690,000 e. None of the above