The Griggs Corporation has credit sales of $1,231,650 Total assets turnover Cash

Question

The Griggs Corporation has credit sales of $1,231,650 Total assets turnover Cash to total assets Accounts receivable turnover Inventory turnover Current ratio Debt to total assets 3.15 times 1.60 % 10 times 10 times 2.54 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 Fixed assets Equity Total assets Total debt and stockholders' equity

Explanation / Answer

Total asset turnover=Sales/Total assets

Hence total assets=1231650/3.15=$391000

Cash to total assets=1.6%

Hence Cash=($391000*1.6%)=$6256.

AR turnover=Sales/Average AR

Hence Average AR=(1231650/10)=$123165

Inventory turnover=Sales/Average inventory

Hence Average inventory=(1231650/10)=$123165

Hence total current assets=Cash+AR+Inventory

=(6256+$123165+$123165)=$252586.

Current ratio=Current assets/Current liabilities

Hence Current liabilities=(252586/2.54)=$99443(Approx)

Debt to total assets=Debt/Total assets

Hence total debt=$391000*0.35=$136850

Hence Current liabilities+Long term debt=136850

Hence Long term debt=(136850-99443)=$37407.

Total assets=Totaldebt+Total equity

Hence total equity=(391000-136850)=$254150

Also fixed assets=Total assets-Current assets

=(391000-252586)=$138414

Assets Liabilities and stockholders equity Cash 6256 Current debt 99443 Accounts receivable 123165 Long term debt 37407 Inventory 123165 Total debt 136850 Total current assets 252586 Fixed assets 138414 Equity 254150 Total assets 391000 Total debt and stocklholders equity 391000

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