Question

The following information is provided in the 2021 annual report to shareholders of The BizStore: Required: Compute the missing amount in the BizStore financial statement information. (Round your intermediate calculations and final answers to 1 decimal place.) December 31, 2021 $ 43 million 268 million December 31, 2020 24 million $ 38 million million | $ 148 million $ 133 million Accounts receivable Inventory Total assets Total stockholders' equity Net sales Cost of goods sold Net income Average collection period Average days in inventory Equity multiplier Return on equity Profit margin on sales ROA 40.2 days 127.0 days 1.7 15.0 % 19.2 %

This is all the information given; please write out how you have got to our answers as I want to use it as a study guide. Thank you

Answer 1

Ans.		December 31, 2021		December 31, 2020
	Accounts receivable	$5.2	million	$24	million
	Inventory	$43	million	$38	million
	Total assets	$268	million	$310	million
	Total stockholder's equity	$192	million	$148	million
	Net sales	$133	million
	Cost of goods sold	$116.4	million
	Net income	$25.5	million
	Average collection period	40.2	days
	Average days in inventory	127	days
	Equity multiplier	1.7
	Return on equity	15	%
	Profit margin on sales	19.2	%
	ROA	8.8	%
	*Working Notes :
	Net income = Net sales * Profit margin on sales
	$133 * 19.2%
	$25.5	million
	*Average inventory = (Beginning inventory + Ending inventory) / 2
	($38 + $43) / 2
	$40.5	million
	Average days in inventory = Average inventory * Number of days in year / Cost of goods sold
	127 = $40.5 * 365 / Cost of goods sold
	127 = $14,782.5 / Cost of goods sold
	Cost of goods sold = $14,782.5 / 127
	$116.4	(rounded)
	Return on equity = Net income / Average stockholder's equity
	15% =   $25.5 / Average stockholder's equity
	Average stockholder's equity = $25.5 / 15%
	$170
	*Average stockholder's equity = (Beginning stockholder's equity + Ending stockholder's equity) / 2
	$170   =   ($148 + Ending stockholder's equity) / 2
	$170 * 2 = $148 + Ending stockholder's equity
	$340 = $148 + Ending stockholder's equity
	Ending stockholder's equity =   $340 - $148
	Ending stockholder's equity =   $192   million
	Equity multiplier   =   Average assets / Average stockholder's equity
	1.7 = Average assets / $170
	Average assets = $170 * 1.7
	Average assets = $289 million
	*Average assets = (Beginning assets + Ending assets) / 2
	$289 = (Beginning assets + $268) / 2
	$289 * 2 = Beginning assets + $268
	$578 = Beginning assets + $268
	Beginning assets = $578 - $268
	Beginning assets = $310 million
	ROA = Net income / Average assets
	$25.5 / $289
	8.8%
	Average collection period =Number of days in year / Net sales * Average accounts receivables
	40.2 = 365 / $133 * Average accounts receivables
	40.2 * $133 / 365 = Average accounts receivables
	Average accounts receivables = $14.6   million
	*Average accounts receivables = (Beginning accounts receivables + Ending accounts receivables ) / 2
	$14.6   =   ($24 + Ending accounts receivables ) / 2
	$14.6 * 2 = $24 + Ending accounts receivables
	$29.2 = $24 + Ending accounts receivables
	Ending accounts receivables   =   $29.2 - $24
	Ending accounts receivables   =   $5.2   million