BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using th
ID: 2809643 • Letter: B
Question
BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data Total assets turnover: 1.4x Days sales outstanding: 30 daysa Inventory turnover ratio: 6.x Fixed assets turnover: 2.5x Current ratio: 1.6x Gross profit margin on sales: (Sales-Cost of goods sold)/Sales-35% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash Accounts receivable Inventories Fixed assets Total assets Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold 60,000 100,000 $400,000 SalesExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Total Asset turnover = Sales/Total Assets Sales = 400,000*1.4 560,000.00 Inventory = 560,000/6 93,333.33 Fixed assets = 560,000/2.5 224,000.00 Gross Margin = 560,000*35% 196,000.00 Cost of goods sold = 560,000 - 196,000 364,000.00 Accounts receivable turnover = 365/30 12.1667 Accounts receivable = 560,000/12.6667 46,027.40 Cash = 400,000-224,000 - 93,333.33 - 46027.40 36,639.27 Current assets = cash + AR + inventory 176,000.00 Current Liab =176,000/1.6 110,000.00 Common Stock =400,000 - 110,000 - 60,000 - 100,000 130,000.00 Balance sheet Cash 36,639.27 Current liabilities 110,000.00 Accounts receivable 46,027.40 Long term debt 60,000.00 Inventory 93,333.33 Common Stock 130,000.00 Fixed assets 224,000.00 Retained earnings 100,000.00 Total Assets 400,000.00 Total Liabilities and equity 400,000.00 Sales 560,000.00 Cost of goods sold 364,000.00
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