BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data:
Debt ratio: 50% |
Current ratio: 1.8× |
Total assets turnover: 1.5× |
Days sales outstanding: 36.5 daysa |
Gross profit margin on sales: (Sales − Cost of goods sold)/Sales = 25% |
Inventory turnover ratio: 5× |
aCalculation is based on a 365 day year. |
Balance Sheet |
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Cash |
Accounts payable |
||
Accounts receivable |
|
Long term debt |
60,000 |
Inventories |
Common stock |
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Fixed assets |
Retained earnings |
97,500 |
|
Total assets |
$300,000 |
Total liabilities and equity |
|
Sales |
Cost of goods sold |