Question

eBook Problem Walk-Through Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2× Days sales outstanding: 73.0 daysa Inventory turnover ratio: 4× Fixed assets turnover: 3.0× Current ratio: 2.5× 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 answers to the nearest dollar. Balance Sheet Cash $   Current liabilities $   Accounts receivable    Long-term debt 78,000 Inventories    Common stock    Fixed assets    Retained earnings 97,500 Total assets $390,000 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

1.2 = Net Sales/$390,000

Net Sales = $468,000

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

0.15 = (468,000-COGS)/468,000

70,200 =468,000 - COGS

COGS = $397,800

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

73 = (Accounts Receivables/468,000)*365

Accounts Receivables = $93,600

- Inventory turnover ratio = COGS/Inventory

4 =397,800/Inventory

Inventory = $99,450

- Fixed assets turnover = Net Sales/Fixed Assets

3 = $468,000/Fixed Assets

Fixed Assets = $156,000

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

$390,000 = $156,000 + Cash + $93,600 + $99,450

Cash = $40,950

- Current ratio = (Cash +Accounts receivable+Inventory)/Current Liabilties

2.5 = (40,950 + 93,600 + 99,450)/Current Liabilties

Current Liabilties = $234,000/2.5

Current Liabilties = $93,600

- Total Assets = Total liabilities and Equity = $390,000

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

$390,000 = $93,600 + $78,000 + Common stock + $97,500

Common stock = $120,900

Completing the balance sheet and sales information using theabove data:-

Balance Sheet
Cash	$ 40,950	Current liabilities	$
Accounts receivable	$ 93,600	Long-term debt	$ 78,000
Inventories	$ 99,450	Common stock	$120,900
Fixed assets	$ 156,000	Retained earnings	97,500
Total assets	$390,000	Total liabilities and equity	$ 390,000
Sales	$ 468,000	Cost of goods sold	$ 397,800

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