Frog Hollow 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 2004:
Common equity to total assets = 60%
Total asset turnover = 3 times
Long-term debt to total capitalization = 25%
Current ratio = 1.2
Quick ratio = .75
Average collection period (360-day year)= 10 days
Complete the accompanying pro forma balance sheet for Frog Hollow Bakery assuming 2005 sales (all credit)are $450,000.

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The Answer of Frog Hollow 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 2004:
Common equity to total assets = 60%
Total asset turnover = 3 times
Long-term debt to total capitalization = 25%
Current ratio = 1.2
Quick ratio = .75
Average collection period (360-day year)= 10 days
Complete the accompanying pro forma balance sheet for Frog Hollow Bakery assuming 2005 sales (all credit)are $450,000.

Frog Hollow Bakery Is a New Firm Specializing in All-Natural-Ingredient