Question

BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x Days sales outstanding: 34 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3.5x Current ratio: 2.5x 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 answer to the nearest cent. Balance Sheet Cash $    Current liabilities $    Accounts receivable    Long-term debt 56,250 Inventories    Common stock    Fixed assets    Retained earnings 112,500 Total assets $375,000 Total liabilities and equity $    Sales $    Cost of goods sold $

Answer 1

Assets		Liabilities
Cash	87,907	Current liabilities	90,000
Accounts receivable	51,781	Long-term debt	56250
Inventories	85,313	Common stock	1,16,250
Fixed assets	1,50,000	Retained earnings	112500
Total assets	375000	Total Liabilities and equity	375000
Sales	5,25,000	Cost of goods sold	3,41,250
Formula
Total assets turnover	Revenue/Net assets			Revenue= Net assets * 1.4	5,25,000
Days Sales outstanding	Accounts receivable/Sales* No of days			Accounts receivable=Revenue/365*36	51,781
Inventory turnover ratio	Cost of goods sold/Inventories			Inventory= cost of goods Sold/4	85,313
Fixed assets turnover	Net sales/Fixed asset			Fixed assets=Sales/3.5	1,50,000
Current ratio	Current assets/Current liabilities			Current liabilities= Current assets(cash+Accounts receivable +Inventories)/Current ratio	90,000.00
Gross Profit margin on sales	35%			Cost of good sold= (100%-Gross profit)*Revenue	3,41,250
Cash				Total assets- Accounts receivable-Inventories-fixed assets	87,907
Total liabilities and equity= Assets
Common stock = Total liabilities- Current liabilities-Long term debt-Retained earnings