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

Show adjustments for deferred items, Q. Show Adjustments for deferred items...

Q. Show Adjustments for deferred items? This segment discusses the two types of adjustments for deferred items asset/expense adjustments and liability/revenue adjustments. In t

Role of government in a mixed economy, Government: In a mixed economy this...

Government: In a mixed economy this is seems to be the duty of the Government to direct the operation of the economic system in that a way which it subseries the general good. Con

Learning objectives of trial balance, Q. Learning objectives of trial balan...

Q. Learning objectives of trial balance? - The cash basis of accounting know revenues when cash is received and recognizes expenses when cash is paid out. - The accrual basi

Inventory, most consrvatism way of lower cost method

most consrvatism way of lower cost method

Accounting Transactions, Give me some problems in acoounting transactions s...

Give me some problems in acoounting transactions so I can answer it.

Sales discounts and sales returns, Q. Sales discounts and Sales returns? ...

Q. Sales discounts and Sales returns? Sales discounts arise when the seller tenders the buyer a cash discount of 1 percent to 3 percent to induce early payment of an amount due

Next step till finalization, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Uses of cash flow statements, Uses of cash flow statements: The main us...

Uses of cash flow statements: The main usefulness of cash flow analysis is that it facilitates the Finance manager to approximation the cash necessities of the firm and match t

Cash flow information: direct and indirect methods, Cash flow information: ...

Cash flow information: Direct and indirect methods The comparative year-end balance sheets of Sign Graphics, Inc., revealed the following activity in the company's current accou

Show periodicity concept, Q. Show Periodicity concept? As per to the pe...

Q. Show Periodicity concept? As per to the periodicity (time periods) concept or assumption an entity's life can be meaningfully subdivided into time periods (such as months or

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages