Complete the balance sheet and sales information using the following financial d

Question

Complete the balance sheet and sales information using the following financial data:

Debt-to-assets ratio: 60%
Current ratio: 2.1x
Total assets turnover: 2.6x
Days sales outstanding: 33.5 daysa
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35%
Inventory turnover ratio: 5x

aCalculation is based on a 365-day year. Round your answer to the nearest cent.

Balance Sheet




Cash $  
Accounts payable $   Accounts receivable $  
Long-term debt 45,000 Inventories $  
Common stock $   Fixed assets $  
Retained earnings 84,000 Total assets $300,000
Total liabilities and equity $   Sales $  
Cost of goods sold

Explanation / Answer

Debt-to-assets ratio: 60%
Current ratio: 2.1x
Total assets turnover: 2.6x
Days sales outstanding: 33.5 daysa
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35%
Inventory turnover ratio: 5x

Total Asset Turnover = 2.6

Turnover = 2.6*Total asset = 2.6*300000 =$780000

Account Recievable = Days sales outstanding*Turnover/365 = 33.5*780000/365 = 71589.04

Gross Profit = 35%*780000= 273000

Cost of Good sold = 780000-273000 = 507000

Inventory = cost of good sold/Inventory turnover ratio = 507000/5 = 101400

Total Debt =300000*60% = 180000

Accounts payable = 180000-45000 = 135000

Current Asset = 2.1*135000 = 283500

Cash = 283500-71589.04 -101400= $110510.96

Fixed Asset = 300000-283500 = 16500

aCalculation is based on a 365-day year. Round your answer to the nearest cent.

Balance Sheet




Cash $ 110510.96
Accounts payable $135000 Accounts receivable $71589.04
Long-term debt 45,000 Inventories $101400
Common stock $36000 Fixed assets $16500
Retained earnings 84,000 Total assets $300,000
Total liabilities and equity $300000 Sales $780000
Cost of goods
sold = $507000

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