Complete the balance sheet and sales information using the following financal da

Question

Complete the balance sheet and sales information using the following financal data: Total assets turnover: 1x Days sales outstanding: 39 days Inventory turnover ratio: 4x Fixed assets turnover: 3.5x Current ratio: 2.1x Gross profit margin on sales: (Sales-Cost of goods sold)/Sales-35% Calculation is based on a 365-day year. Round your answer to the nearest cent. Balance Sheet Current liabilities$ Cash Accounts receivable Inventories Fixed assets Long-term debt 48,750 Common stock Retained earnings Total liabilities and equity Cost of goods sold 113,750 Total assets $325,000 Sales

Explanation / Answer

Total asset turnover ratio = sales/ total assets

sales = 1 * total assets = $325000

cost of goods sold = sales * ( 1 - gross profit margin)

= $325000 * .65 = $211250

Fixed Asset = Sales/ Fixed asset turnover ratio

= $325000/3.5

= $92857

Current Asset = Total Asset - Fixed Asset

= 325000 - 92857

= $232143

Current ratio = current asset/ current liability

Current liability = $110544

Total Liability and Equity = total asset = $325000

Common Stock = 325000 - 113750 - 48750 - 110544

= $51956

Inventories = cost of goods sold/inventories turnover ratio

= 211250/4

= $52812.5

Account receivables = sales * days sales outstanding/ 365

= $34726

Cash = $232143 - 34726 - 52812.5 = $144604.5

  

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