Question

Complete the balance sheet and sales information in the table that follows for ). White Industries using the following financial data: Total assets turnover: 3 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales - 26% Total liabilities-to-assets ratio: 50% Quick ratio: 1.15 Days sales outstanding (based on 365-day year): 35 days Inventory turnover ratio: 6.0 Do not round intermediate calculation sound your answers to the nearest whole dollar. Partial Income Statement Information Sales $ Cost of goods sold Balance Sheet 50,000 Cash Accounts receivable Inventories Fixed assets Total assets Accounts payable Long-term debt Common stock Retained earnings Total liabilities and equity 100,000 $ 400,000 Chak Me Work

Answer 1

Total Assets Turnover = Sales / Total Assets
3.00 = Sales / $400,000
Sales = $1,200,000

Gross Profit Margin on Sales = (Sales - Cost of Goods Sold) / Sales
0.26 = ($1,200,000 - Cost of Goods Sold) / $1,200,000
Cost of Goods Sold = $888,000

Total Liabilities-to-Assets Ratio = Total liabilities / Total Assets
0.50 = Total liabilities / $400,000
Total liabilities = $200,000

Total liabilities = Accounts Payable + Long-term Debt
$200,000 = Accounts Payable + $50,000
Accounts Payable = $150,000

Days Sales Outstanding = 365 * Accounts Receivable / Sales
35 = 365 * Accounts Receivable / $1,200,000
Accounts Receivable = $115,068

Inventory Turnover Ratio = Cost of Goods Sold / Inventories
6.00 = $888,000 / Inventories
Inventories = $148,000

Quick Ratio = (Cash + Accounts Receivable) / Accounts Payable
1.15 = (Cash + $115,068) / $150,000
Cash = $57,432

Total Assets = Cash + Accounts Receivable + Inventories + Fixed Assets
$400,000 = $57,432 + $115,068 + $148,000 + Fixed Assets
Fixed Assets = $79,500