Question

4.22 Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1×
Days sales outstanding: 73.0 days^a
Inventory turnover ratio: 5×
Fixed assets turnover: 2.5×
Current ratio: 2.0×
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 25%
^aCalculation is based on a 365-day year.

Do not round intermediate calculations. Round your answers to the nearest dollar.

Balance Sheet Cash Current liabilities Accounts receivable Long-term debt 45,000 Inventories Common stock Fixed assets Retained earnings 105,000 Total assets $300,000 Total liabilities and equity Sales Cost of goods sold

Answer 1

120000 cash Accounts Receivables Inventories Fixed Assets Total assest Balance Sheet 187500 Currnt liabilites 30000 long term debt 22500 comon stock 60000 Retained earning 300000 Total Liabilities and equity 45000 30000 105000 300000 sales 150000! COGS 112500

In Following image you can find the solution to complete the Balance sheet based in different information.

Total Asset Turnoves: 1x. Formulia for Total Asset Turnover Met Scele (Total Asset) Met Sale 503.00,000) Met Sale 1150,000 Met Sale = 1,50,000 $ Assumption & Ce treat the Met Sale as credit sale. To find out Account Receivable Credit Sale & Days outstanding Sale Total Days in a year 1.50,000 X 73 365 = 30,000 Account Receivable e 30,000 $

Dete 3 Cost of Croods sold. Gross Boft morgin - Sales - Cost of goode sold. Serles 450,000 - Cost of goods sold 1,50.000 25% = 37,500 = 1,50,000 - Cost of goods sold 3300 Cost of goods sold: 150 000 - 4,20 - 1.12.500 Cost of goodle sold a 9,12,500 $ Inventory turnover Ratio 5x win the 50 winnn Cost of goods sold Average Inventory 900.00 1,19,500 Average Inventory Avesage Instentory 1,12,500 Inventory - 20,000 $

Data: fixed Assets Turn over a Net Fired Sale Assets fixed Auets how to tra Fixed Assets = 1,500.00 Fixed Assets 60,000 $ Torted Asset = 3,00,000 as given Deduct Deduct Deduct Account Receivable Inventory Fixed Assets : 30,000 29,500 60,000 Remaining thing is Cash = 1,87,500 3,00,000 - 30,000 - 20000 - 60,000) Cash 1,84,500 $. 2. W

Date Current Ratio - Current Current Asset. Liabilities Current Auets & Cash & Alwant Receivable & Inventories. 1187.5out 30.000 +291500 2,40,000 Current Ratio = Current Current Assets liabilitics 240,000 Cuanent Licebilities Cument liabilities: 240,000 Current Licobilities - 120,000 8 AS Both side of Total of Assets 300,000 Balance sheet must be match & Total of liabilities & equity 3,00,000 Deduct Current cubilities long term Retained earnings from give you comon stock debt and Total of liabilities will Comon Stock: 3,00,000 - (1,20,000 + h5,000 + 1,03,000) Comon stock = 30,000 $