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

What is customer master record?, A Customer Master Record is a permanent re...

A Customer Master Record is a permanent record that haves key information about a business partner or a material. This information must be entered into the system before any transa

Explain the economic logic, Suppose a firm owns oil well assets. It is deci...

Suppose a firm owns oil well assets. It is deciding how much oil to extract from its oil wells this year and next year. Production of oil costs $10 per barrel this year; next year,

Regular bonds at the time of issuance, Flying High Inc. plans to raise $5,0...

Flying High Inc. plans to raise $5,000,000 external financing through issuing bonds, and is considering two options: regular bonds and zero couple bonds.  The regular bonds will ha

I need help understanding my accounting 205 class., I need help understandi...

I need help understanding my Accounting 205 class. Would some one please help me understand what I am having such a hard time comprehending.

Corporate accounting and accounting for sole proprietorship, Q. Corporate a...

Q. Corporate accounting and accounting for sole proprietorship? Several textbook authors use a sole proprietorship and a partnership form of business ownership to exemplify acc

Effects of failing to prepare adjusting entries, Q. Effects of failing to p...

Q. Effects of failing to prepare adjusting entries ? Failure to organize proper adjusting entries causes net income and the balance sheet to be in error. You are able to see the

Explain about financial statement, Q. Explain about financial statement? ...

Q. Explain about financial statement? The income statement is the statement of retained earnings the balance sheet and the statement of cash flows of Metro Courier Inc demonstr

Forecast cash requirements, We are here left along with statement (d) that ...

We are here left along with statement (d) that defines an accountant as a professional and emphasize his pre-occupation within management of information for internal utilization as

Example of current ratio, Q. Example of current ratio? The current asse...

Q. Example of current ratio? The current assets and current liabilities and current ratios of some other companies as of the third quarter of 2001 were As you are able to se

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd