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

Cash flow analysis, Cash Flow Analysis: As per the Institute of Cost...

Cash Flow Analysis: As per the Institute of Cost and Works Accountants of India (AICWAI), a Cash Flow Statement is a declaration setting out the flow of cash under different

Explain the term- salaries expense and payment, Explain the term- Salaries ...

Explain the term- Salaries Expense and payment The Accounting Entry for Employee Earnings and Deductions Employer is the "agent" who is responsible for withholding the a

One of the companies for which you provide accounting, One of the companies...

One of the companies for which you provide accounting services offers office cleaning services and has 8 customers. Cleaning services are provided in the evenings, Sunday throu

Function and scope of the accounting standards board, Function and scope of...

Function and scope of the Accounting Standards Board: The major function of ASB is to originate accounting standards so that the Council of the Institute in India may set up su

The type of accounting concerned with providing information, The type of ac...

The type of accounting concerned with providing information and analyses to managers within the organization is referred to as

Fifo under periodic inventory procedure, Q. FIFO under periodic inventory p...

Q. FIFO under periodic inventory procedure? The FIFO (first-in, first out) method of inventory costing suppose that the costs of the first goods purchased are those charged to

What is fixed cost, Q. What is Fixed cost? Fixed cost -- a cost that do...

Q. What is Fixed cost? Fixed cost -- a cost that doesn't change as sales volume changes (in the short run.) Fixedcosts generally include such items as rent, interest, depreciat

Explain about sales discounts, Q. Explain about Sales discounts? Sales ...

Q. Explain about Sales discounts? Sales discounts when a company sell goods on account it clearly specifies terms of payment on the invoice. For instance the invoice in Exhibit

Please help, A client comes to you for investment advice on his $500,000 wi...

A client comes to you for investment advice on his $500,000 winnings from the lottery. He has been offered the following options by three different financial institutions and reque

Taxation 1, How are gains from the sale of § 1244 stock treated? Gains on ...

How are gains from the sale of § 1244 stock treated? Gains on the sale of § 1244 stock is treated as

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages