Financial Statement Analysis and Balance Sheet Completion

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Financial Statement Analysis and Balance Sheet Completion From the values of the different ratios that follow, calculate the missing balance sheet items and complete the balance sheet. (30 points) Sales $300,000 A verage collection period (days) : 55 Inventory Turnover (days) 40 Debt to asset ratio 0.4 Current ratio 2 Total Asset turnover 1.5 Fixed asset turnover 3 Assets Liabilities & Equity Cash $6,000 Accounts payable $6,000 Accounts Receivable _____ $76,000 Notes Payable _______ Notes Payable = Total Current Liabilities - A/P - Accrued Expenses = $300,000 - $6,000 - $600=$293,400 Inventory ______ Inventory turnover =Sales / Inventory 40=$300,000/Inventory Thus, Inventory =$300,000/40=$7,500 Accrued Expenses $600 Prepaid expenses _______ Total Current Liabilities ________ Current Ratio =Current Assets / Current Liabilities 3=$300,000/Current Liabilities Thus, Current Liabilities=$300,000/3=$100,000 Total Current Assets ________ Total Current Assets = Total Assets - Fixed Assets=$200,000 - $100,000=$ 1 00,000 Debt to Assets ratio =Total Liabilities / Total Assets 0.4=Total Liabilities/$200,000 Thus, Total Liabilities=$200,000*0.4=$80,000 Bonds Payable __________ Bonds Payable = Total Liabilities - Current Liabilities = - $20,000 Fixed Assets _________ Fixed Asset Turnover=Sales/Fixed Assets 3=$300,000/Fixed Assets Thus, Fixed Assets=$300,000/3=$100,000 Common Stock $16,000
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