Complete the balance sheet and sales information using the following financial d
ID: 2618676 • Letter: C
Question
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x ,Days sales outstanding: 41 days, Inventory turnover ratio: 5x, Fixed assets turnover: 3x, Current ratio: 2x, Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% 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 80,000 Inventories Common stock Fixed assets Retained earnings 120,000 Total assets $400,000 Total liabilities and equity $ Sales $ Cost of goods sold $
Explanation / Answer
Total Asset Turnover = Sales / Total Asset
1.4 = Sales / $400,000
Sales = $560,000
Gross Profit = (Sales - Cost of Goods Sold) / Sales
30% = ($560,000 - Cost of Goods Sold) / $560,000
Cost of Goods Sold = $392,000
Inventory Turnover Ratio = Cost of Goods Sold / Inventory
5 = $392,000 / Inventory
Inventory = $78,400
Days Sales Outstanding = 365 * Accounts Receivable / Sales
41 = 365 * Accounts Receivable / $560,000
Accounts Receivable = $62,904.11
Fixed Assets Turnover = Sales / Fixed Assets
3 = $560,000 / Fixed Assets
Fixed Assets = $186,666.67
Total Assets = Cash + Accounts Receivable + Inventories + Fixed Assets
$400,000 = Cash + $62,904.11 + $78,400 + $186,666.67
Cash = $72,029.22
Current Assets = Cash + Accounts Receivable + Inventories
Current Assets = $72,029.22 + $62,904.11 + $78,400
Current Assets = $213,333.33
Current Ratio = Current Assets / Current Liabilities
2 = $213,333.33 / Current Liabilities
Current Liabilities = $106,666.67
Total Liabilities and Equity = Total Assets
Total Liabilities and Equity = $400,000
Current Liabilities + Long-term Debt + Common Stock + Retained Earnings = $400,000
$106,666.67 + $80,000 + Common Stock + $120,000 = $400,000
Common Stock = $93,333.33
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