Question

Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data: Total assets turnover: 1.7 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 25% Total liabilities-to-assets ratio: 50% Quick ratio: 1.10 Days' sales outstanding (based on 365-day year): 36.5 days Inventory turnover ratio: 3.75 Do not round intermediate calculations. Round your answers to the nearest whole dollar. Partial Income Statement Information Sales $   Cost of goods sold      Balance Sheet Assets Liabilities and Equity Cash $    Accounts payable $    Accounts receivable    Long-term debt   50,000 Inventories    Common stock    Fixed assets    Retained earnings   100,000 Total assets $   400,000 Total liabilities and equity $

Answer 1

Calculating the Balance Sheet and Income Statement information:-

- Total Asset Turnover = Net Sales/Total Assets

1.7 = Net Sales/$400,000

Net Sales = $680,000

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

0.25 = (680,000-COGS)/680,000

170,000 = 680,000-COGS

COGS = $ 510,000

- Total liabilities-to-assets ratio = Total liabilities/Total Assets

0.50 = Total liabilities/$400,000

Total liabilities = $200,000

- Total liabilities = Accounts Payable + Long-term debt

200,000 = Accounts Payable + 50,000

Accounts Payable = $150,000

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

36.5 = (Accounts Receivables/680,000)*365

Accounts Receivables = $ 68,000

- Inventory turnover ratio = COGS/Inventory

3.75 = 510,000/Inventory

Inventory = $136,000

- Quick ratio = (Cash +Accounts receivable)/Accounts Payable

1.10 = (Cash + 68,000)/150,000

Cash = $97,000

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

400,000 = 97,000 + 68,000 + 136,000 + Fixed assets

Fixed assets = $99,000

- Total Assets = Total liabilities and Equity = $400,000

Total liabilities and Equity = Total Liabilities + Common stock + Retained earnings

400,000 = 200,000 + Common stock + 100,000

Common stock = $100,000

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