value: 15.00 points Use the following information to complete the balance sheet
ID: 2779850 • Letter: V
Question
value: 15.00 points Use the following information to complete the balance sheet below. Sales are $9.8 million, capital intensity ratio is 2.00 times, debt ratio is 55 percent, and fixed asset turnover is 1.40 times. (Enter your answers in millions of dollars rounded to 2 decimal places.) Balance Sheet Assets Current assets Fixed assets Total assets Liabilities and Equity Total liabilities Total equity Total liabilities and equity References eBook & Resources Worksheet Difficulty: 2 Intermediate Check my work Previous attemptExplanation / Answer
capital intenstity ratio=total asset/sales
2=total assets/9.8
total assets=9.8*2=19.6 million
debt ratio=total liabilities/total assets
55%=total liabilities/19.6
total liabilities=55%*19.6=10.78 million
total equity=total assets-total liabilities
=19.6-10.78
=8.82 million
total liabilities and equity=total liabilities+total equity=10.78+8.82=19.60 million
fixed asset turnover ratio=sales/fixed assets
1.40=9.8/fixed assets
fixed assets=9.8/1.4=7.0 million
current assets=total assets -fixed assets=19.6-7=12.6 million
the above are the answers calculated
current assets=12.6 million
fixed assets=7 million
total assets=19.6 million
total liabilities=10.78 million
equity=8.82 million
total liabilities and equity=19.6 million
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