Question

QUESTION 2
Complete the 2017 Statement of Financial Position (Balance Sheet) for Southernland Industries
using the information that follows :
Statement of Financial Position (Balance Sheet)
Sutherland Industries December 31,2017
	Cash	R   60 000.00		Account payable	R 240 000.00
	Marketable securities	R   50 000.00		Notes payable
	Account receivable			Accruals
	Inventories			Total Current liabilities
	Total Current assets			Long-term debt
	Net Fixed assets			Stockholders' equity
	Total assets			Total liabilities & owners' equity
The following financial data for the end 2017 is also available :
1. Sales totalled   R 3 600 000
2. The gross profit margin was 25%
3. Inventory turnover was 6.0.
4. There are 360 days in a year
5. The average collection period is 40 days
6. The current ratio was 1 : 60
7. The total asset turnover ratio was 1 : 20
8. The debt ratio was 60 %
	*** Please show all workings

Answer 1

Current Ratio - 1 60 current Assets Current Liabilities 60 Current Assers rent Casht Marketable Securitiut nccount Receivable = 60000 +50,000. +4,00 000 + 4,80,000 IL: .. Cusseur Assets - 990000 9,90 000 cussent Liabilities to In cussent Liabilities = 5,94,00,000 vy Total Asset Tusnored Ratio - 1 deseo Net sales 90 Sheet Average Total Assets noat - TV 36,00 000 Average Total Assets Average Total Assets = 7,20,0000 D| Total Assets - Total Cussent Assets Assets 7,2000000 - 980000 - Net Fixed Assets i Net Fixed Assets - 710, 10,000/ 2020-2-11 23:10

Answer Givon sales - 36,00,000 Gross profit margin - 25% - 98 TO DOO cost of goods sold - 36,00,00DX 125 ii) Inventory Tusnovear = 6 cost of goods sold - Average Inventories 2880,000 Average Inventories Average Inventries = 4,80000 In the absence of Begining of Inventory values it is assumed that Average Inventories to considesed as inventory value to be presented in Balance sheet in Debtor's collection period = 40 days Debtors . sales Turnover, x360 - 40 days Debters X 360 - 40 36,00 000 Debtiss = 4,00,00D 1 : Acour Receivable = 4,00,00 2020-2-11 23:11

Vi Debt Ratio - 60% Total Debt Total Assets -- 60% Statement Sutherland of Financial position (Balance sheet) Industries December 31, 2017 Assets Amount Liabutis Amant cash | Account payable 249007 Marketable Securities Notes payable & 591,69000 60,000 50000 4,00 000 4,80000 Accruals Account Receivable Inventories Total Current Afsus 9,99000 Total current liabi. Glies 584,00 000 Net Fixed Assets Total Assets 7, 10, 10,000 | Long term Debt 7,570,000 stockholder's equity 50.40000 17, 20,00000 Total Liabilities & 17, 2900000 owner's equity 2020-2-11 23:13