Builtrite Bakery is a new firm specializing in all natural ingredient pastry products. In attempting to determine what the financial position of the firm should be, the financial manager obtained the following average ratios for the baking industry for 2021: Common equity / total assets 60% Total assets turnover 3 times Long-term debt / total assets Current ratio 20% 1.2 Quick ratio Average collection period (360-day year) .75 6 days Complete the accompanying projected balance sheet for Builtrite Bakery assuming 2022 sales (all credit) are $18,000,000. Builtrite Bakery projected Balance Sheet ending December 31, 2022 Cash Current Liabilities Accts. Receivable Long Term Debt Inventory Total Debt Tot. Current assets Common Equity Fixed assets Tot. Liabilities & equity Total Assets Based upon the above information, the level of total current liabilities equals: O $1,440,000 O $1,200,000 O $1,600,000 $900,000
