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

Generate the cash flow of companies, Rondo plc, a sports apparel manufactur...

Rondo plc, a sports apparel manufacturer with a cost of capital of 13.75%, is looking to expand its activity and is considering two possible countries to open a sales subsidiary. R

International capital budgeting, International Capital Budgeting Ques...

International Capital Budgeting Question 1. How does international capital budgeting differ from domestic capital budgeting? Many firms, when assessing international proj

Hello, Hello, I'm having trouble understanding Direct Cost, Overhead Cost a...

Hello, I'm having trouble understanding Direct Cost, Overhead Cost and Indirect Cost. ***Also Period cost and Product cost. please can anyone explain it and give examples for eac

Show journalizing adjusting entries, Q. Show Journalizing adjusting entries...

Q. Show Journalizing adjusting entries? Subsequent to completing Micro Train's financial statements from the work sheet you should enter the adjusting entries in the general jo

Hi, 1. Carmen Santiago works for a number of businesses as a  “consultant...

1. Carmen Santiago works for a number of businesses as a  “consultant.” She has helped design accounting systems,  provided accounting services, and analyzed the financial  s

How does asset cash increase, Q. How does asset cash increase? An asset...

Q. How does asset cash increase? An asset cash increases (debited) as well as a liability unearned service revenue increases (credited) by USD 4500. The credit is to Unearned S

How to manage barter income?, How to create account for barter transactions...

How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.

Analyzing how well the company is performing, Q. Analyzing how well the com...

Q. Analyzing how well the company is performing? The classified income statement illustrates important relationships that help in analyzing how well the company is performing.

Prefferred dividendes, matt schmidt company''s ledger shows the amount of

matt schmidt company''s ledger shows the amount of

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