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