Question

The following information is from Boston Pharmaceutical Inc.'s financial statements: $30,500,000 Sales (all credit) 2.5 times Total assets turnover 40% Total debt to total assets 6.00 times Fixed asset turnover 2.6 times Current ratio Average collection period 30 days 12 times Inventory turnover Part A Using the above listed ratios and data, compute the balance of the following accounts. Assume all sa are on credit and a 360-day year. Round to the nearest dollar. [Hint: use ratio formulas to derive the requested values.]. Please show your work. a) Total assets b) Total debt c) Total equity View Help Search Mailings d) Fixed assets e) Current assets f) Average daily credit sales g) Accounts Receivable h) Inventory i) Current liabilities

Answer 1

Sdution: -golu 360 -Hveiate delt credit Salu 허 3, Soo,0oo 360 Salet salu Total Anet turcuu Tetal Aset =f)2200 000 "Total Anta 2 notal dubt to total Avet, Total d Total Ae Tetal debt $4,gSt.ooo Fired Aneti ttun fired et

6-4 30,Sooooo Fisedt Aet5,083,333 on De Recavabla tuunove 360 30 + Recanvabla tunoves Sole [ 2 Account Receivalole Account, Recivable 30,SDO ooo a, 54し667 Sale onentoy-tu noua Owe dnuento 236 Soo,ooo anventory

12,a0o,oo 5,083,333 Avet current Ruto - Current Age Current Gahil 4 ㅋ,116,667 Current liokititu 2.b → Total-Asse ="Tota/habilites Total Galiliby 12,200,000 Total dest Total equity12,200,o0o ¢ 12,200,000-4,880 p00 "Tota) e9uity