Question

Total assets turnover: 1.2x Days sales outstanding: 30.5 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3x Current ratio: 2x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash Current liabilities Accounts receivable Long-term debt 68,750 Inventories Common stock Fixed assets Retained earnings 82,500 Total assets $275,000 Total liabilities and equity Sales Cost of goods sold

Answer 1

- Total assets Turnover = Net sales/Total Assets

1.20 = Net Sales/$275,000

Net Sales = $ 330,000

- Gross Profit Margin = (Sales - Cost of Goods Sold)/Sales

0.15 = (330,000 - COGS)/330,000

49500 = 330,000 - COGS

COGS = $ 280,500

- Dales Sales Outstanding = (Accounts receivables/Credit sales)*365 days

Assuming Net sales be Credit sales

30.5 = (Accounts receivables/330,000)*365 days

Accounts receivables = $ 27575.34

- Inventory turnover ratio = COGS/Inventory

4 = 280,500/Inventory

Inventory = $ 70,125

- Fixed Assets Turnover = Net sales/Fixed Assets

3 = 330,000/Fixed Assets

Fixed Assets = $110,000

- Total Assets = Cash + Accounts Receivables + Inventory + Fixed Assets

275,000 = Cash + 27,575.34 + 70,125 + 110,000

Cash = $ 67,299.66

- Current Ratio = Current Assets/Current Liabilities

Current Assets = Cash + Accounts Receivables + Inventory

= $ 67,299.66 + 27,575.34 + 70,125

= $ 165,000

Current Ratio = Current Assets/Current Liabilities

2 = 165000/Current Liabilities

Current Liabilities = $ 82,500

- Total Assets = Total Liabilities and Equity

Total Liabilities and Equity = Current Liabilities + Long-term Debt + Common Stock + Retained earnings

275,000 = 82,500 + 68,750 + Common Stock + 82500

Common Stock = $ 41,250