Complete the balance sheet and sales information in the table that follows for J
ID: 2651751 • Letter: C
Question
Complete the balance sheet and sales information in the table that follows for J. White
Industries using the following financial data:
Total assets turnover: 1.5
Gross profit margin on sales: (Sales – Cost of goods sold)/Sales = 25%
Total liabilities-to-assets ratio: 40%
Quick ratio: 0.80
Days sales outstanding (based on 365-day year): 36.5 days
Inventory turnover ratio: 3.75
Partial Income Statement Information
Sales _______
Cost of goods sold _______
Balance Sheet
Cash _______ Accounts payable ______
Accounts receivable _______ Long-term debt 50,000
Inventories _______ Common stock ______
Fixed assets _______ Retained earnings 100,000
Total assets $400,000 Total liabilities and equity ______
Explanation / Answer
Total Assets 400,000.00 Assets Turnover = Sales / Assets 1.5 = Sales/400,000 Sales = 600,000 Gross Profit = 25% *600,000 = 150,00 Cost of goods sold = 600,000 - 150,000 =450,000 Liabilities / 400,000 =40% Liabilities = 160,000 Debt = 50,000 Accounts payable = 160,000-50,000 = 110,000 Equity =Assets - Liab =400,000-160,000= 240,000 Common Stock = Equity - RE = 240,000 -100,000 =140,000 Invetory Turnover = Sales/ inventory 3.75 = 600,000/Inv Inventory = 160,000 Quick Ratio = (Cash + AR / AP) or QA/CL .80 = QA/110000 QA = 88000 Fixed Assets = Total Assets - Quick Assets - inventory Fixed Assets = 400,000 - 88000 - 160,000 Fixed Assets = 152,000 Sales = 600,000 Days Sales outstanding = 36.5 Days AR = Sales/365*36.5 = 600,000*36.5/365 = 60,000 QA= Cash + AR 88000 = Cash + 60000 Cash =28000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.