Question

In: Finance

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2x...

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.2x
Days sales outstanding: 41.5 daysa
Inventory turnover ratio: 7x
Fixed assets turnover: 3x
Current ratio: 1.5x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35%
aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest cent.

Balance Sheet
Cash $   Current liabilities $  
Accounts receivable    Long-term debt 30,000
Inventories    Common stock   
Fixed assets    Retained earnings 50,000
Total assets $200,000 Total liabilities and equity $  
Sales $   Cost of goods sold $  

Solutions

Expert Solution

First we will calculate sales as per below:

Total assets turnover = Sales / Total assets

1.2 = Sales / $200000

Sales = $200000 * 1.2 = $240000

Next, we will calculate cost of goods sold as below:

Gross profit margin in sales = 35% or 0.35 * Sales

So, Cost of goods sold = (1 - 0.35) * sales

Cost of goods sold = 0.65 * $240000 = $156000

Next we will calculate fixed assets as below:

Fixed assets turnover = Sales / fixed assets

3 = $240000 / Fixed assets

Fixed assets = $240000 / 3 = $80000

Next we will calculate current assets as below:

Total assets = Fixed assets + Current assets

$200000 = $80000 + Current assets

Current assets = $200000 - $80000 = $120000

Next we will calculate current liabilities as below:

Current ratio = Current assets / current liabilities

1.5 = $120000 / Current liabilities

Current liabilities = $120000 / 1.5 = $80000

Next we will calculate accounts receivable as below:

Days' sales outstanding = 365 / Accounts receivable turnover ratio

41.5 = 365 / Accounts receivable turnover ratio

Accounts receivable ratio = 365 / 41.5

Accounts receivables turnover ratio = 8.80

Accounts receivable turnover ratio = Sales / Accounts receivables

8.795 = $240000 / Accounts revceivables

Accounts receivables = $240000 / 8.8 = $27273

Next we will calculate inventory as below:

Inventory turnover ratio = Sales / Inventory

7 = $240000 / Inventory

Inventory = $240000 / 7 = $34286

Next we will calculate cash as below:

Current assets = Cash + inventory + accounts receivable

$120000 = Cash + $34286 + $27273

Cash = $120000 - $34286 - $27273 = $58441

Next we will calculate total liabilities & equity as below:

Total liabilities & equity = Total assets

Total liabilities & equity = $200000

Next we will calculate common stock as below:

Total liabilities & equity = Current liabilities + Long trrm debt + Common stock + Retained earnings

$200000 = $80000 + $30000 + Common stock + $50000

$200000 = $160000 + Common stock

Common stock = $200000 - $160000 = $40000


Related Solutions

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2x...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2x Days sales outstanding: 33.5 daysa Inventory turnover ratio: 6x Fixed assets turnover: 3.5x Current ratio: 1.9x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest cent. Balance Sheet Cash $    Current liabilities $    Accounts receivable    Long-term debt 60,000 Inventories    Common...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2x...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2x Days sales outstanding: 31.5 daysa Inventory turnover ratio: 5x Fixed assets turnover: 2.5x Current ratio: 2.1x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $   Current liabilities $   Accounts receivable    Long-term debt 62,500 Inventories    Common...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.3×...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.3× Days sales outstanding: 73.0 daysa Inventory turnover ratio: 5× Fixed assets turnover: 3.0× Current ratio: 2.0× Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash $ Current liabilities $ Accounts receivable Long-term debt 48,000 Inventories Common stock Fixed...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3x Current ratio: 1.9x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $ Current liabilities $ Accounts receivable Long-term debt 50,000 Inventories Common stock Fixed...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3x Current ratio: 1.9x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $ Current liabilities $ Accounts receivable Long-term debt 50,000 Inventories Common stock Fixed...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1×...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1× Days sales outstanding: 73.0 daysa Inventory turnover ratio: 4× Fixed assets turnover: 3.0× Current ratio: 2.5× Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash $   Current liabilities $   Accounts receivable    Long-term debt 67,500 Inventories    Common...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.6x...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.6x Days sales outstanding: 30.5 daysa Inventory turnover ratio: 5x Fixed assets turnover: 3.5x Current ratio: 1.7x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 25% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $   Current liabilities $   Accounts receivable    Long-term debt 75,000 Inventories    Common...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.5x...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.5x Days sales outstanding: 39 daysa Inventory turnover ratio: 7x Fixed assets turnover: 2.5x Current ratio: 1.5x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $   Current liabilities $   Accounts receivable    Long-term debt 48,750 Inventories    Common...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4×...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4× Days sales outstanding: 36.5 daysa Inventory turnover ratio: 5× Fixed assets turnover: 3.0× Current ratio: 2.0× Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash $   Current liabilities $   Accounts receivable    Long-term debt 60,000 Inventories    Common...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x...
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x Days sales outstanding: 33 daysa Inventory turnover ratio: 3x Fixed assets turnover: 3x Current ratio: 1.6x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet: Cash $ = ? Current liabilities $ = ? Accounts receivable = ? Long-term...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT