The Griggs Corporation has credit sales of $957,600. Total assets turnover Cash

Question

The Griggs Corporation has credit sales of $957,600. Total assets turnover Cash to total assets Accounts receivable turnover Inventory turnover Current ratio Debt to total assets 2.85 times 120 % 20 times 14 times 1.70 times 35 % Using the above ratios, complete the balance sheet. (Round your answers to the nearest whole number) GRIGGS CORPORATION Balance Sheet Assets Liabilities and Stockholders' Equity Cash Accounts receivable Inventory Current debt Long-term debt Total debt Total current assets Equity Fixed assets Total debt and stockholders' equity Total assets Hints References eBook & Resources

Explanation / Answer

SOLUTION

GRIGGS Corporation

Balance sheet

Working Notes-

1. Total assets turnover = Sales / Total assets

2.85 = $957,600 / Total assets

Total assets =  $957,600 / 2.85 = $336,000

2. Cash to total assets = Cash / Total assets

1.20% = Cash / $336,000

Cash = $336,000 * 1.20% = $4,032

3. Accounts receivable turnover = Sales / Accounts receivable

20 = $957,600/ Accounts receivable

Accounts receivable =  $957,600 / 20 = $47,880

4. Inventory turnover = Sales / Inventory

14 = $957,600 /Inventory

Inventory = $957,600 / 14 = $68,400

5. Fixed assets = Total assets - Current assets

= $336,000 - $120,312

= $215,688

Current assets = Accounts receivable + Inventory + Cash

= $47,880 + $68,400 + $4,032 = $120,312

6. Current ratio = Current assets / Current liabilities

1.70 = $120,312/ Current liabilities

Current liabilities = $120,312/ 1.70 = $70,772

7. Debt to total assets = Total debt / Total assets

35% =  Total debt / $336,000

Total debt = $336,000*35% = $117,600

8. Long term debt = Total debt - Current debt

=  $117,600 - $70,772 = $46,828

Assets Amount ($) Liabilities and stockholder's Equity Amount ($) Cash 4,032 Current debt 70,772 Accounts receivable 47,880 Long term debt 46,828 Inventory 68,400 Total debt 117,600 Total current assets 120,312 Equity (Total assets - Total debt) 218,400 Fixed assets 215,688 Total assets 336,000 Total debt and stockholder's equity 336,000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.