Balancesheet derivation question, Accounting Basics

Assignment Help:

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

Related Discussions:- Balancesheet derivation question

Audit Reports, Why it is important for independent auditor to be a member o...

Why it is important for independent auditor to be a member of a professional body?

Use the following information to answer questions, The Bayside Company uses...

The Bayside Company uses the LIFO cost flow method to value inventory. In the current year, profit at Bayside is running unusually high. The corporate tax rate is also high this ye

Benefites of management accounting information, Benefites of Management acc...

Benefites of Management accounting information To obtain this benefit, businesses have become more 'customer driven' (which is, concerned with satisfying customer needs). This

Cross indexing is made up, Cross indexing is made up

Cross indexing is made up

Solution, The trial balance of Bellemy Fashion Center contained the followi...

The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.

A store receives $400 cash after offering a chain discount, A store receive...

A store receives $400 cash after offering a chain discount of 10/10/5 on a good. What was the list price? A. $492.20 B. $519.82 C. $533.33 D. $612.00

Establishing the change fund, Establishing the Change Fund Change Fu...

Establishing the Change Fund Change Fund (asset) is debited and Cash is credited. Only time this fund would be used is if the fund is established or increased, just like Pet

Define purchase discounts and purchase returns, Q. Define purchase discount...

Q. Define purchase discounts and purchase returns? Two general deductions from purchases are (a) purchase discounts and (b) purchase returns and allowances. In the general ledg

Explain inventory turnover ratio, Q. Explain Inventory turnover ratio? ...

Q. Explain Inventory turnover ratio? An important ratio for managers, investors, and creditors to consider when analyzing a company's inventory is the inventory turnover ratio.

Genentech, Genentech, Inc. is a California-based biotech pioneer recently a...

Genentech, Inc. is a California-based biotech pioneer recently acquired by Swiss pharmaceutical giant Roche Holding AG. Roche paid $46.8 billion in cash for the 44 percent of Gen

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages