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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: 36.5 daysa
Inventory turnover ratio: 5×
Fixed assets turnover: 3.0×
Current ratio: 2.5×
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 answers to the nearest dollar.

Balance Sheet
Cash $   Current liabilities $  
Accounts receivable    Long-term debt 52,500
Inventories    Common stock   
Fixed assets    Retained earnings 52,500
Total assets $210,000 Total liabilities and equity $  
Sales $   Cost of goods sold $  

Solutions

Expert Solution

Total asset turnover 1.1
Total asset $                               210,000
Sale= Total asset*Turnover ratio
Sale= 210000*1.1
Sale= $                               231,000
Days sale outstanding 36.5
Account receivable 231000*36.5/365
Account receivable $                                 23,100
Gross profit margin 25%
Gross profit 231000*25%
Gross profit $                                 57,750
Cost of goods sold= (231000-57750)
Cost of goods sold= $                               173,250
Inventory turnover ratio 5
Closing inventory= Cost of goods sold/Turnover ratio
Closing inventory= 173250/5
Closing inventory= $                                 34,650
Fixed asset turnover 3
Sale= $                               231,000
Fixed asset= Sale/Fixed asset
Fixed asset= 231000/3
Fixed asset= $                                 77,000
Total asset $                               210,000
Less Fixed asset $                               (77,000)
Less Receivables $                               (23,100)
Less Inventory $                               (34,650)
Cash balance $                                 75,250
Cash $                                 75,250
Inventory $                                 34,650
Account receivable $                                 23,100
Current asset $                               133,000
Current ratio 2.5
Current ratio= Current asset/Current liability
Current liability= 133000/2.5
Current liability= $                                 53,200
Total liabilities and equity= Total asset
Total liabilities and equity= $                               210,000
Less Current liabilities $                               (53,200)
Less Long term debt $                               (52,500)
Less Retained earnings $                               (52,500)
Equity capital $                                 51,800
Balance Sheet
Cash $                                 75,250 Current liabilities $   53,200
Accounts receivable $                                 23,100 Long term debt $   52,500
Inventory $                                 34,650 Common stock $   51,800
Fixed assets $                                 77,000 Retained earnings $   52,500
Total asset $                               210,000 Total liabilities & equity $ 210,000
Sale $                               231,000 Cost of goods sold $ 173,250

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