The Griggs Corporation has credit sales of $1,164,000 3.00 times Total assets tu

Question

The Griggs Corporation has credit sales of $1,164,000 3.00 times Total assets turnover Cash to total assets Accounts receivable turnover Inventory turnover Current ratio Debt to total assets 1.90 % 10 times 16 times 1.83 times 45 % Using the above ratios, complete the balance sheet. (Round your answers to the nearest whole dollar.) GRIGGS CORPORATION Balance Sheet Assets Liabilities and Stockholders' Equity Current debt Cash Accounts receivable Inventory Long-term debt Total debt Total current assets Fixed assets Equity Total assets Total debt and stockholders' equity

Explanation / Answer

Total asset turnover=Sales/Total assets

Hence Total assets=(1164000/3)=$388000

Cash to total assets=Cash/Total assets

Hence cash=(388000*1.9%)=$7372

AR tuinover=(Credit sales/AR)

Hence AR=(1164000/10)=$116,400

Inventory turnover=(Sales/Inventory)

Hence Inventory=(1164000/16)=$72750

Total current assets=Cash+Inventory+AR

=(7372+116400+72750)=$196522

Current ratio=Total current assets/Total current liabilities

Total current liabilities=(196522/1.83)=$107389(Approx)

Total assets=current assets+Fixed assets

Fixed assets=(388000-196522)=$191478

Debt to total assets=total debt/total assets

Hence total debt=0.45*$388000=$174600

total debt=current liabilities+long term debt

long term debt=(174600-107389)=$67211

Equity=($388000-174600)=$213400

Assets Liabilities and Stockholders equity Cash 7372 Current debt 107389 AR 116400 Long-term debt 67211 Inventory 72750 Total debt 174600 Total current assets 196522 Fixed assets 191478 Equity 213400 Total assets 388000 Total debt and stockholders equity 388000

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