Question

Consider the following data for the Jamestown Company. Sales = $5,110,000 Total asset turnover = 4x Current ratio = 3:1 Quick ratio = 2:1 Current liabilities to net worth = 30% Average collection period = 24 days Total debt to total assets = 0.4 Fill in the balance sheet for the Jamestown Company based on the data provided above (assume a 365-day year). Round your answers to the nearest dollar. Balance Sheet Cash $   Accounts payable $   Accounts receivable     Total current liabilities $   Inventory Long-term debt $       Total current assets $   Stockholders’ equity $   Fixed assets     Total assets $       Total liabilities and equity $

Answer 1

=> It is given that Sales = $5,110,000 and Average collection period = 24 days

* Therefore, Accounts receivable = $ 336,000

=> It is given that Sales = $5,110,000 and Total asset turnover = 4 times

* Therefore, Total assets = $ 1,277,500 and also, total liabilities and equity is same as total assets, so total liabilities and equity = $ 1,277,500

=> It is given that Total debt to total assets = 0.4 and we know that Total assets = $ 1,277,500

* Therefore, Total debt = $ 511,000

=> Now we know Total assets = $ 1,277,500 and Total debt = $ 511,000

* Therefore, Shareholder's equity = $ 766,500

=> It is given that Current liabilities to net worth = 30% and we know that Shareholder's equity = $ 766,500

* Therefore, Current liabilities = $ 229,950 and Account payable is the only current liabilities, so Account payable = $ 229,950

=> Now we know total current liabilities = $ 229,950 and Total debt = $ 511,000 and we can find long-term debt from it

* Therefore, long-term debt = $ 281,050

=> It is given that Current ratio = 3:1 and we know that current liabilities = $ 229,950

* Therefore,  Total current assets = $ 689,850

=> Now we know Total current assets = $ 689,850 and Total assets = $ 1,277,500 and we can find fixed assets

* Therefore, fixed assets = $ 587,650

=> It is given that Quick ratio = 2:1 and we know that Total current assets = $ 689,850 and current liabilities = $ 229,950

* Therefore, Inventory = $ 222,950

=> Now we know Inventory = $ 222,950, Accounts receivable = $ 336,000, total current assets = $ 689,850 and now we can find the cash

* Therefore cash = $ 130,900