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Homework answers / question archive / Data: Balance Sheet Analysis Complete the balance sheet and sales information in the table that follows for J
Data:
Balance Sheet Analysis
Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data:
Total assets turnover: 1.9
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30%
Total liabilities-to-assets ratio: 50%
Quick ratio: 0.90
Days' sales outstanding (based on 365-day year): 36.5 days
Inventory turnover ratio: 3.50
Do not round intermediate calculations. Round your answers to the nearest whole dollar.
Question:
Partial Income Statement Information:
Sales:
Cost of goods sold:
Balance Sheet
Cash:
Accounts receivable:
Inventories:
Fixed assets:
Total Assets: $ 400,000
Liabilities and Equity
Accounts Payable:
Long-term debt : $50,000
common stock:
Retained earnings: 100,000
Total liabilities and equity:
Total asset turnover = Sales /Total assets
1.9 = Sales / 4,00,000
Sales = $760,000
Gross Profit margin = (Sales - Cost of goods sold) / Sales
0.30 = (760,000 - Cost of goods sold) / 760,000
Cost of goods sold = $532,000
Total liabilities to assets ratio = Total liabilities / Total assets
0.50 = Total Liabilities / 400,000
Total Liabilities = $200,000
Inventory turnover ratio = Cost of goods sold / Inventory
3.50 = 532,000 / Inventory
Inventory = $152,000
Total liabilities = Account Payables + Long term debt
200,000 = Account Payables + 50,000
Account Payables = $150,000 (this will be current liabilities since no other current liabilities are given and long term debt are non-current)
Days' sale outstanding = (Account receivable / Sales) * 365
36.5 = (Account receivables / 760,000) * 365
Account Receivables = $76,000
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
0.90 = (Current Assets - 152,000) / 150,000
Current Assets = $287,000
Cash = Current Assets - Inventory - Account Receivables
Cash = 287,000 - 152,000 - 76,000
Cash = $59,000
Fixed Assets = Total assets - Current Assets
Fixed Assets = 400,000 - 287,000
Fixed Assets = $113,000
Total laibilities and equity = Total Assets
Total liabilities and equity = $400,000
Common Stock = Total Liabilities and equity - Account Payable - Long term debt - Retained earnings
Common Stock = 400,000 - 150,000 - 50,000 - 100,000
Common Stock = $100,000
| Partial Income Statement Information: | |
| Sales | 760000 |
| Cost of goods sold | 532000 |
| Balance Sheet | |
| Amount | |
| Cash | 59,000 |
| Accounts Receivable | 76,000 |
| Inventories | 152,000 |
| Fixed Assets | 113,000 |
| Total Assets | 400,000 |
| Accounts Payable | 150,000 |
| Long-term debt | 50,000 |
| Common Stock | 100,000 |
| Retained Earnings | 100,000 |
| Total Liabilities & Equity | 400,000 |
