Question

# BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Total...

BALANCE SHEET ANALYSIS

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

Total assets turnover: 1.3x
Days sales outstanding: 38 daysa
Inventory turnover ratio: 4x
Fixed assets turnover: 2.5x
Current ratio: 2.3x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30%
aCalculation 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 65,000 Inventories Common stock Fixed assets Retained earnings 81,250 Total assets \$325,000 Total liabilities and equity \$ Sales \$ Cost of goods sold \$

Calculating the Balance Sheet and Income Statement information:-

- Total Asset Turnover = Net Sales/Total Assets

1.3 = Net Sales/\$325,000

Net Sales = \$422,500

- Gross profit margin on sales= (Sales - Cost of goods sold)/Sales

0.30 = (422,500-COGS)/422,500

126,750 =422,500 - COGS

COGS = \$295,750

- Days' sales outstanding = (Accounts Receivables/Net Sales)*365

38 = (Accounts Receivables/422,500)*365

Accounts Receivables = \$43,986.30

- Inventory turnover ratio = COGS/Inventory

4 =295,750/Inventory

Inventory = \$73,937.50

- Fixed assets turnover = Net Sales/Fixed Assets

2.5 = \$422,500/Fixed Assets

Fixed Assets = \$169,000

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

\$325,000= \$169,000 + Cash + \$43,986.30 + \$73,937.50

Cash = \$38,076.20

- Current ratio = (Cash +Accounts receivable+Inventory)/Current Liabilties

2.3 = (\$38,076.20 + \$43,986.30 + \$73,937.50)/Current Liabilties

Current Liabilties = \$156,000/2.3

Current Liabilties = \$67,826.09

- Total Assets = Total liabilities and Equity = \$325,000

Total liabilities and Equity = Current Liabilities + Long-term Debt + Common stock + Retained Earnings

\$325,000 = \$67,826.09 + \$65,000 + Common stock + \$81,250

Common stock = \$110,923.91

Completing the balance sheet and sales information using theabove data:-

 Balance Sheet Cash \$ 38,076.20 Current liabilities \$67,826.09 Accounts receivable \$ 43,986.30 Long-term debt \$ 65,000.00 Inventories \$ 73,937.50 Common stock \$110,923.91 Fixed assets \$ 169,000.00 Retained earnings \$81,250.00 Total assets \$325,000.00 Total liabilities and equity \$ 325,000.00 Sales \$ 422,500 Cost of goods sold \$ 295,750

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