Balance Sheet Analysis Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 5x Fixed assets turnover: 2.5x Current ratio: 1.6x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 20% aCalculation is based on a 365-day year. Round your answer to the nearest cent. Balance Sheet Cash $ Current liabilities $ Accounts receivable $ Long-term debt 81,250 Inventories $ Common stock $ Fixed assets $ Retained earnings 81,250 Total assets $325,000 Total liabilities and equity $ Sales $ Cost of goods sold $ Solution Balance sheet Assets inventory $71500 Accounts recievable   $35750 fixed assets $143000 cash $ 74750 Total assets $ 325000 Total liabilities and equity common stock $ 48750 Retained earning $81250 current liabilities $ 113750 long term debt 81250 Total liabilities and equity $325000 Note:- 1.total assets turnover = sales / total assets 1.1 = sales / $325000 sales = $357500 2. days sales outstanding = Accounts receivable /annual sale *365 36.5 = Accounts recievable / 357500 * 365 36.5 /365 = Accounts recievable / 357500 Accounts recievable = 36.5 / 365 * 357500 = $35750 3. inventory turnover = sales/ inventory 5 = 357500 / inventory inventory = $71500 4. fixed assets turnover = sale / fixed assets 2.5 = 357500 / fixed asset fixed assets = $143000 5. gross profit margin = sales - cost of goods sold / sale 0.20 = (357500 - cost of goods sold) / 357500 71500 = 357500 - cost of goods sold cost of goods sold = 357500 - 71500 cost of goods sold = 286000 6. cash = total assets - fixed assets - accounts recievable - inventory =325000 - 143000 - $35750 - 71500 = $74750 7. total liabilities and equity = total assets = $325000 8. current ratio = current assets / current liabilities 1.6 = (cash + accounts receivable + inventory ) / current liabilities 1.6 = 182000/ current liabilities current liabilities = 113750 9. total liabilites = current liabilities + long term debt = 113750 + 81250 = 195000 10. total liabilities and equity = ( current liabilities + long term debt)+( common stock + retained earning) 325000 = 113750 + 81250 + common stock + 81250 common stock = 48750 .

1. Balance Sheet Analysis Complete the balance sheet and sales information using the following
financial data: Total assets turnover: 1.1x Days sales outstanding: 36.5 daysa Inventory turnover
ratio: 5x Fixed assets turnover: 2.5x Current ratio: 1.6x Gross profit margin on sales: (Sales -
Cost of goods sold)/Sales = 20% aCalculation is based on a 365-day year. Round your answer to
the nearest cent. Balance Sheet Cash $ Current liabilities $ Accounts receivable $ Long-term
debt 81,250 Inventories $ Common stock $ Fixed assets $ Retained earnings 81,250 Total assets
$325,000 Total liabilities and equity $ Sales $ Cost of goods sold $
Solution
Balance sheet
Assets
inventory $71500
Accounts recievable   $35750
fixed assets $143000
cash $ 74750
Total assets $ 325000
Total liabilities and equity
common stock $ 48750
Retained earning $81250
current liabilities $ 113750
long term debt 81250
Total liabilities and equity $325000

2. Note:-
1.total assets turnover = sales / total assets
1.1 = sales / $325000
sales = $357500
2. days sales outstanding = Accounts receivable /annual sale *365
36.5 = Accounts recievable / 357500 * 365
36.5 /365 = Accounts recievable / 357500
Accounts recievable = 36.5 / 365 * 357500
= $35750
3. inventory turnover = sales/ inventory
5 = 357500 / inventory
inventory = $71500
4. fixed assets turnover = sale / fixed assets
2.5 = 357500 / fixed asset
fixed assets = $143000
5. gross profit margin = sales - cost of goods sold / sale
0.20 = (357500 - cost of goods sold) / 357500
71500 = 357500 - cost of goods sold
cost of goods sold = 357500 - 71500
cost of goods sold = 286000
6. cash = total assets - fixed assets - accounts recievable - inventory
=325000 - 143000 - $35750 - 71500
= $74750

3. 7. total liabilities and equity = total assets
= $325000
8. current ratio = current assets / current liabilities
1.6 = (cash + accounts receivable + inventory ) / current liabilities
1.6 = 182000/ current liabilities
current liabilities = 113750
9. total liabilites = current liabilities + long term debt
= 113750 + 81250
= 195000
10. total liabilities and equity = ( current liabilities + long term debt)+( common stock +
retained earning)
325000 = 113750 + 81250 + common stock + 81250
common stock = 48750