Balancesheet derivation question, Accounting Basics

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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

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