Question

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

Total assets turnover: 1.6x
Days sales outstanding: 33.5 days^a
Inventory turnover ratio: 6x
Fixed assets turnover: 3x
Current ratio: 2.2x
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 cent.

Balance Sheet
Cash	$		Current liabilities	$
Accounts receivable			Long-term debt	100,000
Inventories			Common stock
Fixed assets			Retained earnings	100,000
Total assets	$400,000		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

1.6 = Net Sales/$400,000

Net Sales = $640,000

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

0.15 = (640,000-COGS)/640,000

96,000 =640,000 - COGS

COGS = $544,000

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

33.5 = (Accounts Receivables/640,000)*365

Accounts Receivables = $58,739.73

- Inventory turnover ratio = COGS/Inventory

6 =544,000/Inventory

Inventory = $90,666.67

- Fixed assets turnover = Net Sales/Fixed Assets

3 = $640,000/Fixed Assets

Fixed Assets = $213,333.33

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

$400,000 = $213,333.33 + Cash + $58,793.73 + $90,666.67

Cash = $37,206.27

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

2.2 = ($37,206.27 + $58,793.73 + $90,666.67)/Current Liabilties

Current Liabilties = $234,000/2.5

Current Liabilties = $84,848.49

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

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

$400,000 = $84,848.49 + $100,000 + Common stock + $100,000

Common stock = $115,151.51

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

Balance Sheet
Cash	$ 37,206.27	Current liabilities	$ 84,848.49
Accounts receivable	$ 58,793.73	Long-term debt	$ 100,000
Inventories	$ 90,666.67	Common stock	$115,151.51
Fixed assets	$ 213,333.33	Retained earnings	100,000
Total assets	$400,000	Total liabilities and equity	$ 390,000
Sales	$ 640,000	Cost of goods sold	$544,000