As an airline financial analyst, your forecast of 2015 for DirectJet is as follows: Sales: $200...

As an airline financial analyst, your forecast of 2015 for DirectJet is as follows:

Sales: $200 million

Cost of goods sold: $100 million

You plan to use the following information to forecast next year’s balance sheet:

Inventory turnover = 5

Current ratio = 2

Asset turnover = 0.50

Debt ratio = 40%

Cash = $70 million

Accounts receivable turnover = 20

a. Forecast total assets.

b. Estimate the current assets.

c. Estimate the current liabilities.

d. Forecast the total shareholder equity.

Expert Solution

jeff jeffy answered 2 years ago

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