Question: [Liquidity and activity ratios-balance sheet forecasting) You have been asked to project next years working capital requirements of the OS Company. The company sales forecast for next year is S12 million. Oil target ratios are:
Use the tiles roiecast and target ratios to forecast each of the following elements of OB's balance sheet (i) 'Memory
(ii) Accounts receivable
(iii) Accounts payable
(iv) Cash
(v) Current ratio
Assume that beginning and ending A•R. A P. and inventory are equal. (The latter also implies CO(iS equals purchases.) Further-more. assume Al is the company only current liability.