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
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Input Values
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Total assets
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300000
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retained earnings
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97500
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Long term debt
|
60000
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Debt to asset ratio
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50%
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current ratio
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1.8
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total asset to turnover ratio
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1.5
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days sales oustanding ratio
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36.5
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Gross Profit Margin ratio
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0.25
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Inventory to turnover ratio
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5
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Derived values
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Fixed Asset
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120000
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Current Asset
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180000
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Therefore current liability
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100000
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Therefore turnover
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200000
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therefore debtors/credit sales
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20000
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Therefor gross profit
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50000
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Cost of goods sold
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150000
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Therefor Inventory
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30000
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|
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Balance sheet
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as on.......
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for the
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year ending...........
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Liabilities
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Amt
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Amt
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Amt
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Asset
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Amt
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Amt
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|
|
|
|
|
|
|
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Capital
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|
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Fixed asset
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120000
|
120000
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Common stock
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|
42500
|
42500
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Current asset
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|
|
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Cl.Retained earnings
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|
|
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debtors/account receivable
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20000
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|
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Op. ret.earnings
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47500
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|
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Inventories
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30000
|
|
|
Gross profit
|
50000
|
97500
|
97500
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Other current asset
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130000
|
180000
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|
Long Term Debt
|
|
60000
|
60000
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|
|
|
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Current Liability
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|
|
|
|
|
|
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Account receivable
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|
100000
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100000
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|
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|
|
|
|
|
|
|
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Total
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|
|
300000
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Total
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300000
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