2.00 points The Griggs Corporation has credit sales of $907,100. Using the above
ID: 2813656 • Letter: 2
Question
2.00 points
The Griggs Corporation has credit sales of $907,100.
Using the above ratios, complete the balance sheet. (Round your answers to the nearest whole number.)
Assets:
Cash:
Accounts recievable:
Inventory
Total current assets
Fixed assets
Total assets
Liabilities and Stockholders Equity:
Current debt
Long term debt
Total Debt
Equity
Total debt and stockholders equity
Total assets turnover 2.35 times Cash to total assets 1.45 % Accounts receivable turnover 20 times Inventory turnover 10 times Current ratio 2.02 times Debt to total assets 45 %Explanation / Answer
Total Assets Turnover = Credit Sales / Total Assets
2.35 = $907,100 / Total Assets
Total Assets = $386,000
Cash to Total Assets = Cash / Total Assets
1.45% = Cash / $386,000
Cash = $5,597
Accounts Receivable Turnover = Credit Sales / Accounts Receivable
20 = $907,100 / Accounts Receivable
Accounts Receivable = $45,355
Debt to Total Assets = Total Debt / Total Assets
45% = Total Debt / $386,000
Total Debt = $173,700
Total Debt and Stockholders’ Equity = Total Assets
Total Debt and Stockholders’ Equity = $386,000
Total Debt and Stockholders’ Equity = Total Debt + Equity
$386,000 = $173,700 + Equity
Equity = $212,300
Inventory Turnover = Credit Sales / Inventory
10 = $907,100 / Inventory
Inventory = $90,710
Current Assets = Cash + Accounts Receivable + Inventory
Current Assets = $5,597 + $45,355 + $90,710
Current Assets = $141,662
Current Ratio = Current Assets / Current Liabilities
2.02 = $141,662 / Current Liabilities
Current Liabilities = $70,130
Total Debt = Current Liabilities + Long-term Debt
$173,700 = $70,130 + Long-term Debt
Long-term Debt = $103,570
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