(3-11) Complete the balance sheet and sales information in the table that follow
ID: 2701352 • Letter: #
Question
(3-11) Complete the balance sheet and sales information in the table that follows for J. White
Industries using the following financial data:
Total assets turnover: 1.5
Gross profit margin on sales: (Sales %u2013 Cost of goods sold)/Sales = 25%
Total liabilities-to-assets ratio: 40%
Quick ratio: 0.80
Days sales outstanding (based on 365-day year): 36.5 days
Inventory turnover ratio: 3.75
Partial Income Statement Information
Sales __600,000_____
Cost of goods sold ___450,000____
Balance Sheet
Cash _______ Accounts payable ______
Accounts receivable __60,000_____ Long-term debt 50,000
Inventories __120,000_____ Common stock ______
Fixed assets _______ Retained earnings 100,000
Total assets $400,000 Total liabilities and equity __400,000____
I would like to see the equations for the blanks.
I calcualted the bold numbers.
Explanation / Answer
total assets turnover=450000/total assets
total assets= 600000/1.5=400000
40%= total liability/ total assets
total liability=40%*400000=160000
accounts payable=160000-50000=110000
common stock= 400000-(110000+50000+100000)=140000
quick ratio=current asset-inventory)/current liability
0.80=current asset/110000
current asset=88000
cash=88000-60000=28000
Fixed asset=192000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.