Question

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1x Days sales outstanding: 41.5 daysa Inventory turnover ratio: 7x Fixed assets turnover: 3.5x Current ratio: 2.3x 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 answer to the nearest cent. Balance Sheet Cash $ Current liabilities $ Accounts receivable Long-term debt 41,250 Inventories Common stock Fixed assets Retained earnings 96,250 Total assets $275,000 Total liabilities and equity $ Sales $ Cost of goods sold $

Answer 1

Total Assets		275000
Total assets turnover = 1x
Sales = 275000*1 = 275000
Gross Profit = 35% of 275000 = 96250
Cost of goods sold = 275000-96250 = 178750
Inventory turnover = 7x
Inventory = 178750 /7 = 25536
Days sales outstanding = 41.50 days
Days sales outstanding = 365/Sales * Accounts receivable
41.50 = 365 / 275000* Accounts receivable
Accounts receivable = 31267
Fixed assets turnover = 3.50x
Fixed assets = 275000 /3.5 = 78571
Current assets = Total assets -Fixed assets
	275000-78571 = 196429
Current assets = Cash+Accounts receivable+Inventory
Cash = 196429-31267-25536 = 139626
Current ratio = 2.3
Current liabilities = 196429/2.3 = 85404
Common Stock= Total assets -CL-LTD-RE
	275000- 85404-41250-96250 = 52096
Balance Sheet;
Current assets				Liabilities:
Cash		139626		Current liabilities		85404
Accounts receivable		31267		Long term debts		41250
Inventory		25536		Total liabilities			126654
Total current assets			196429	Common Stock		52096
Fixed assets			78571	Retained earnings		96250
				Total stockholder equity			148346
Total assets			275000	Total liabilities and Equity			275000
Sales			275000	Cost of goods sold			178750