Question

3

3.   Complete the balance sheet and sales information in the table that follows J. White Industries using the following financial data:

Debt ratio = 60% (Total Liabilities/Total Assets)      
Quick ratio = 0.95   (Current Assets-inventory)/Current Liabilities
Total asset turnover = 2.00 Sales/Total Asset
Days sales outstanding = 24 days (Accounts receivable/(sales÷365))  
Gross profit margin = 20% (Sales – cost of goods sold)/sales      
Inventory turnover = 8.0 Cost of goods sold/inventory

Balance Sheet
Cash                   Accounts payable          

A/R                   Long-term debt   $150,000  

Inventories               Common stock          

Fixed Assets               Retained Earnings   $95,000  

Total Assets   $350,000       Total Liabilities & Equity              
Sales                   Cost of goods sold              

Answer 1