Of the following, which accounts are used to track sales in calculating a percen

Question

Of the following, which accounts are used to track sales in calculating a percentage of sale on a Pro Forma Balance Sheet? Short Term Investment Other Current Assets Long Term Investments Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Current Liabilities Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities Misc Stocks Options Warrants Redeemable Preferred Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets

Explanation / Answer

*Total Assets = Total assets may be used to find Asset Turnover Ratio = Turnover or Sales/Total Assets

* Total Stockholders Equity & Long term Debt will be used to calculate capital turnover ratio = Sales/Long term debt+Total stockholders equity

* Net tamgible Assets can also be used to find Asset turnover

* With the helpe of Current Assets and Current liabilitees, we can calulate working capital turnover = Sales / Net working capital (i.e Current assets - current liabilities)

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