Question

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.2x
Days sales outstanding: 33.5 days^a
Inventory turnover ratio: 6x
Fixed assets turnover: 3.5x
Current ratio: 1.9x
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 answers to the nearest cent.

Balance Sheet
Cash	$		Current liabilities	$
Accounts receivable			Long-term debt	60,000
Inventories			Common stock
Fixed assets			Retained earnings	75,000
Total assets	$300,000		Total liabilities and equity	$
Sales	$		Cost of goods sold	$

Answer 1

Total assets turnover: 1.2
Total assets = 300000
Total assets turnover = Sales/ Total assets
Sales = 300000*1.2 = 360000
Dayss Sales outtstanding: 33.5 days
Accounts receivable = 360000/365 *33.5 = 33041
Gross profit =35%
Gross profit = 360000*35% = 126000
Cost of goods sold = Sales - Gross profit
		360000-126000 = 234000
Inventory Turnover ratio = 6
Invnentory turnover = COGS / Inventory
6 = 234000 / Invnentory
Inventory = 39000
Fixed assets turnover = Sales / Fixed assets
3.5 = 360000 / Fixed assets
Fixed assets = 360000/3.5 = 102857
Total assets = Cash+ AR + Invnentory + Fixed assets
300000 = Cash +33041+39000+102857
Cashh = 125102
Current assets = Total assets -Fixed assets = 300000-102857 = 197143
Current ratio= Current assets / Current liabilities
1.9 = 197143 / Current liabilities
Current liabilities = 197143/1.9 = 103760
Total liabilities = Current liabilities + Long term debts+ Common Stock+ Retained earnings
300000 = 103760+60000+ Common Stock +75000
Common Stock = 61240
Balance Sheet:
Cash		125102	Current liabilitie		103760
Accounts receivable		33041	Long term debt		60000
inventory		39000	Common Stock		61240
Fixed assets		102857	Retained earnings		75000
Total assets		300000	Total liabbilities and equity		300000
Sales		360000	Cost of goods sold		234000