Complete the balance sheet and sales information using the following finandal da
ID: 2811260 • Letter: C
Question
Complete the balance sheet and sales information using the following finandal data: Total assets turnover: 1.3x Days sales outstanding: 35 days Inventory turnover ratio: 7x Fixed assets turnover: 3x rent ratio: 2.4x Gross profit margin on sales: (Sales-Cost of goods sold)/Sales-20% ecalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold Cash Accounts receivable 52,500 Inventories Fixed assets Total assets Sales 122,500 $350,000 GatewayExplanation / Answer
Total Assets Turnover = Sales / Total Assets
1.3x = Sales / $350,000
Sales = $455,000.00
Fixed Assets Turnover = Sales / Fixed Assets
3x = $455,000 / Fixed Assets
Fixed Assets = $151,666.67
Gross Profit Margin = (Sales - Cost of Goods Sold) / Sales
20% = ($455,000 - Cost of Goods Sold) / $455,000
Cost of Goods Sold = $364,000.00
Days Sales Outstanding = 365 * Accounts Receivable / Sales
35 = 365 * Accounts Receivable / $455,000
Accounts Receivable = $43,630.14
Inventory Turnover Ratio = Cost of Goods Sold / Inventory
7 = $364,000 / Inventory
Inventory = $52,000.00
Total Assets = Cash + Accounts Receivable + Inventories + Fixed Assets
$350,000 = Cash + $43,630.14 + $52,000 + $151,666.67
Cash = $102,703.19
Current Ratio = (Cash + Accounts Receivable + Inventories) / Current Liabilities
2.4x = ($102,703.19 + $43,630.14 + $52,000) / Current Liabilities
Current Liabilities = $82,638.89
Total Liabilities and Equity = Total Assets
Total Liabilities and Equity = $350,000
Total Liabilities and Equity = Current Liabilities + Long-term Debt + Common Stock + Retained Earnings
$350,000 = $82,638.89 + $52,500 + Common Stock + $122,500
Common Stock = $92,361.11
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