Complete the Balance sheet and sales information in the table that follows for J
ID: 2763541 • 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 Sustainment 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 laibilties/ total assets = 0.4
Total liabiltites / $400000 = 0.4
Total liabilities = $160000
Total liabilities = long term debt + current liabilities
$160000 = $50000 + current liabilities
Current liabilities(Accounts payable = $110000
Total Liabilites and equity = total assets
Total liabilities and equity = total liabilities + common stock + retained earning
$400000 = $160000 + common stock +100000
Common stock = $140000
Total assets turnover ratio = sale / total assets
1.5 = sale / $400000
total sale = $600000
Gross Profit ratio = gross profit / sale * 100
0.25 = gross profit / $600000
gross profit= $150000
Cost of goods sold = Net sale - gorss profit
Cost of goods sold = $600000 - $150000
cost of goods sold = $450000
Stock Turnver ratio = cost of goods sold / ending inventory
3.75 = 450000 / Ending inventory
Ending inventory = $120000
Days sale outstanding = Accounts receivable / credit sale * 365
36.5 = Accounts receivable / $600000 *365
Accounts receivable = (36.5 * 600000) /365
Accounts receivable = $60000
Quick ratio = (Current assets - inventory) / current liabilites
0.80 = (Current assets - 120000) / $110000
88000 = (Current assets - 120000)
Current assets = 208000
Fixed assets = total assets - current assets
Fixed assets = $400000 - 208000
Fixed assets = $192000
According to above all the data figured,
sales $600000
less: cost of goods sold $450000
Gross profit $150000
Balance sheet
Assets
cash 28000
Inventory 120000
Accounts receivable $60000
Fixed assets 192000
Total assets $400000
Liabilities
Accounts payable $110000
long term debt 50000
Total liabilities $160000
Common stock 140000
Retained earning 100000
Total Equity 240000
Total liabilities and equity $400000
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