Balancesheet derivation question, Accounting Basics

Assignment Comments –  Debt-to-assets ratio: 50%

Current Ratio: 1.8x
Total assets turnover: 1.5x      
Days sales outstanding: 36.5 days*
Gross profit margin on sale: (Sales – Cost of goods sold)/Sales = 25%
Inventory turnover ratio: 5                                                     

Balance Sheet

Cash                                                                                                            Accounts payable
 
Accounts receivable                                                                        Long-term debt                                                     `60,000
 
Inventories                                                                                          Common stock
 
Fixed assets                                                                                          Retained earnings                                    97,500                                   
 
Total assets                                                      $300,000                  Total liabilities and equity     
 
Sales                                                                                                            Cost of goods sold

 

 

Input Values

 

Total assets

300000

retained earnings

97500

Long term debt

60000

Debt to asset ratio

50%

current ratio

1.8

total asset to turnover ratio

1.5

days sales oustanding ratio

36.5

Gross Profit Margin ratio

0.25

Inventory to turnover ratio

5

 

 

Derived values

 

Fixed Asset

120000

Current Asset

180000

Therefore current liability

100000

Therefore turnover

200000

therefore debtors/credit sales

20000

Therefor gross profit

50000

Cost of goods sold

150000

Therefor Inventory

30000

 

 

 

Balance sheet

as on.......

for the

year ending...........

 

 

 

 

 

 

 

 

 

Liabilities

Amt

Amt

Amt

Asset

Amt

Amt

 

 

 

 

 

 

 

Capital

 

 

 

Fixed asset

120000

120000

Common stock

 

42500

42500

Current asset

 

 

Cl.Retained earnings

 

 

 

debtors/account receivable

20000

 

Op. ret.earnings

47500

 

 

Inventories

30000

 

Gross profit

50000

97500

97500

Other current asset

130000

180000

Long Term Debt

 

60000

60000

 

 

 

Current Liability

 

 

 

 

 

 

Account receivable

 

100000

100000

 

 

 

 

 

 

 

 

 

 

Total

 

 

300000

Total

 

300000

 

Posted Date: 7/26/2012 5:25:44 AM | Location : United States







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