Balance Sheet Cole Eagan Enterprises December 31, 2005 Cash $4500 Accounts Payab

ID: 2707038 • Letter: B

Question

Balance Sheet

Cole Eagan Enterprises

December 31, 2005

Cash $4500 Accounts Payable $10,000

Accruals 1,000

Information (2005 values)

1. Sales Totaled $110,000

2. The gross profit margin was 25 percent.

3. Inventory turnover was 3.0

4. There are 360 days in the year.

5. The average collection period was 65 days.

6. The current ratio was 2.40.

7. The total asset turnover was 1.13.

8. The debt ratio was 53.8 percent.

1. Inventory for CEE in 2005 was ___.

2. Notes payable for CEE in 2005 was ___.

3. Accounts receivable for CEE in in 2005 was ___.

4. Net fixed assets for CEE in 2005 were ___.

5. Total assets for CEE in 2005 were ___.

6. Long term debt for CEE in 2005 was ___.

Again must show work! Thanks!!

1. Inventory turnover = sales/inventory

Inventory = 110,000/3 = 36,666.67

2. Current asset/current liabilty =2.4

current liabilty=(4500+36,666.67)/2.4 =17152.78

Notes payable =17152.78-10,000-1000=$6152.78

3. average collection period = 360*Accounts receivable/sales

Accounts receivable = 65*110,000/360 =$19,861.11

5. asset turnover = sales/asset

Total asset = 110,000/1.13 =$ 97,345.13

4. Net fixed assets = Total asset- current asset = 97,345.13-(4500+36,666.67) =$56,178.47

6. Total Debt/Total asset =53.8%

Total Debt = 53.8%*97,345.13 =$52,371.68

Long term debt = $52,371.68-17152.78 =$35218.90

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