Question

Total assets turnover: 1x Days sales outstanding: 37 daysa Inventory turnover ratio: 6x Fixed assets turnover: 3x Current ratio: 2.5x 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 30,000 Inventories Common stock Fixed assets Retained earnings 60,000 Total assets $200,000 Total liabilities and equity $ Sales $ Cost of goods sold $

Answer 1

Calculating the Balance Sheet and Income Statement information:-

- Total Asset Turnover = Net Sales/Total Assets

1.0 = Net Sales/$200,000

Net Sales = $200,000

- Gross profit margin on sales= (Sales - Cost of goods sold)/Sales

0.15 = (200,000-COGS)/200,000

30,000 = 200,000-COGS

COGS = $ 170,000

- Days' sales outstanding = (Accounts Receivables/Net Sales)*365

37 = (Accounts Receivables/200,000)*365

Accounts Receivables = $ 20,273.97

- Inventory turnover ratio = COGS/Inventory

6 = 170,000/Inventory

Inventory = $28,333.33

- Fixed Assets Turnover = Net sales/Fixed Assets

3 = 200,000/Fixed Assets

Fixed Assets = $66,666.67

- Total Assets = Cash +Accounts receivable + Inventory + Fixed assets

200,000 = Cash + 20,273.97 + 28,333.33 + 66,666.67

Cash = $84,726.03

- Current Ratio = Current Assets/Current Liabilities

2.5 = (84,726.03 + 20,273.97 + 28,333.33)/Current Liabilities

Current Liabilities = $53,333.33

- Total Assets = Total liabilities and Equity = $200,000

Total liabilities and Equity =Current Liabilities + Long-term Debt + Common stock + Retained Earnings

200,000 = 53,333.33 + 30,000 + Common stock + 60,000

Common stock = $56,666.67

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