assets turnover: 1x Total Days sales outstanding: 39 days Inventory turnover rat

Question

assets turnover: 1x Total Days sales outstanding: 39 days Inventory turnover ratio: 4x Fixed assets turnover: 3.5x Current ratio: 2.1x Gross profit margin on sales: (Sales-Cost of goods sold)/Sales-35% Calculation is based on a 365-day year. Round your answer to the nearest cent. Balance Sheet Current liabilities Cash $ 144,60 110,54 s 34,726 Long-term debt 48,750 Accounts receivable Inventories Fixed assets Common stock 51,956 Retained earnings Total liabilities 325,00 and equity Cost of goods s211,25 sold $ 52,812 s 92,857 113,750 Total assets $325,000 Sales

Explanation / Answer

1. ) gross profit margin = [sales - 211250] / sales

0.35 * sales =  sales - 21125

211250 = sales - 0.35 sales

211250 = 0.65 sales

sales = $325000

2. ) Inventory turnover ratio =sales / ending inventory

4 = 325000 / ending inventory

ending inventory = 81250

Assets turnover ratio = sale / total assets

1 = 325000 / total assets

Total assets = 325000

Total assets = fixed assets + current assets

325000 = 92857 - current assets

Current assets = 232143

3.) Total current assets = cash + accounts receivable + inventories

   232143 = cash + 34726 + 81250

   cash = 116167

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