Question: 22 on page 133

Balance sheet analysis Complete the balance sheet and sales information that follows

using the following financial data:

Debt ratio: 50%

Current ratio: 1.8_

Total assets turnover: 1.5_

Days sales outstanding: 36.5 daysa

Gross profit margin on sales: (Sales _ Cost of goods sold)/Sales _ 25%

Inventory turnover ratio: 5_

a Calculation is based on a 365-day year.

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 ________________

Price: $2.99

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