Question

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x Days sales outstanding: 32.5 daysa Inventory turnover ratio: 7x Fixed assets turnover: 3.5x Current ratio: 2.5x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 20% 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 45,000 Inventories    Common stock    Fixed assets    Retained earnings 75,000 Total assets $300,000 Total liabilities and equity $   Sales $   Cost of goods sold $

*****please LABEL all answers very clearly*********

Answer 1

Total Assets Turnover = Sales / Total Assets
1.40 = Sales / $300,000
Sales = $420,000

Gross Profit Margin = (Sales - Cost of Goods Sold) / Sales
0.20 = ($420,000 - Cost of Goods Sold) / $420,000
$84,000 = $420,000 - Cost of Goods Sold
Cost of Goods Sold = $336,000

Days Sales Outstanding = 365 * Accounts Receivable / Sales
32.50 = 365 * Accounts Receivable / $420,000
Accounts Receivable = $37,397.26

Inventory Turnover Ratio = Cost of Goods Sold / Inventory
7 = $336,000 / Inventory
Inventory = $48,000

Fixed Assets Turnover = Sales / Fixed Assets
3.50 = $420,000 / Fixed Assets
Fixed Assets = $120,000

Total Assets = Cash + Accounts Receivable + Inventory + Fixed Assets
$300,000 = Cash + $37,397.26 + $48,000 + $120,000
Cash = $94,602.74

Current Assets = Cash + Accounts Receivable + Inventory
Current Assets = $94,602.74 + $37,397.26 + $48,000
Current Assets = $180,000

Current Ratio = Current Assets / Current Liabilities
2.50 = $180,000 / Current Liabilities
Current Liabilities = $72,000

Total Liabilities and Equity = Total Assets
Total Liabilities and Equity = $300,000

Total Liabilities and Equity = Current Liabilities + Long-term Debt + Common Stock + Retained Earnings
$300,000 = $72,000 + $45,000 + Common Stock + $75,000
Common Stock = $108,000