Given the financial data and ratios listed below for the Atlanta Company, determine what Atlanta Company recorded as Notes payable on its 2005 balance sheet.
Sales $10,000
Gross profit margin 40%
Inventory turnover ratio 4 times
Net profit margin 8%
Average collection period 45 days
Return on equity 50%
Return on assets 20%
Cash $250 Current ratio 2.5
Accounts payable days 30 days
Note: Of total sales, 80 percent are on credit and the remainder are cash sales.
Assume a 360-day year. Use COGS for Inventory turnover ratio.
Atlanta Company Balance Sheet for Year Ending December 31, 2005
Cash _________ Accounts receivable _________ Inventory _________ net fixed assets ________ Total assets _________ Notes payable_________ Accounts payable_________ Long-term debt_________ Equity_________ Total claims _________.