CramX
RegisterLog in

Financial Statement Analysis and Balance Sheet Completion

A guide to analyzing financial statements and completing balance sheets for businesses.

Ethan Wilson
Contributor
4.1
53
7 months ago
Preview (2 of 3 Pages)
100%
Purchase to unlock

Page 1

Financial Statement Analysis and Balance Sheet Completion - Page 1 preview image

Loading page ...

Financial Statement Analysis and Balance Sheet CompletionFrom the values of the different ratios that follow, calculate the missing balance sheetitems and complete the balance sheet. (30 points)Sales $300,000Average collection period (days): 55Inventory Turnover (days) 40Debt to asset ratio 0.4Current ratio 2Total Asset turnover 1.5Fixed asset turnover 3Assets Liabilities & EquityCash $6,000Accounts payable $6,000Accounts Receivable _____$76,000Notes Payable _______Notes Payable = Total Current Liabilities-A/P-Accrued Expenses = $300,000-$6,000-$600=$293,400Inventory ______Inventory turnover =Sales / Inventory40=$300,000/InventoryThus, Inventory =$300,000/40=$7,500Accrued Expenses $600Prepaid expenses _______Total Current Liabilities ________Current Ratio =Current Assets / Current Liabilities3=$300,000/Current LiabilitiesThus, Current Liabilities=$300,000/3=$100,000Total Current Assets ________Total Current Assets = Total Assets-Fixed Assets=$200,000-$100,000=$100,000Debt to Assets ratio =Total Liabilities / Total Assets0.4=Total Liabilities/$200,000Thus, Total Liabilities=$200,000*0.4=$80,000Bonds Payable __________Bonds Payable = Total Liabilities-Current Liabilities =-$20,000Fixed Assets _________Fixed Asset Turnover=Sales/Fixed Assets3=$300,000/Fixed AssetsThus, Fixed Assets=$300,000/3=$100,000Common Stock $16,000

Page 2

Preview Mode

This document has 3 pages. Sign in to access the full document!

Study Now!

XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat

Document Details

Subject
Accounting

Related Documents

View all
Class Notes

Accounting

what really is accounting?

5.0
Class Notes

Master Managerial Accounting Techniques

Honors Managerial Accounting course led by Dr. Michael Newman, focusing on cost analysis, ethics, communication, and real-world application through interactive discussions, case studies, and presentations.

Class Notes

Controlling and Reporting of Real Assets

Overview of asset impairment recognition in accounting: when an asset’s value declines due to damage, market loss, or legal issues, a journal entry records the loss to reflect the asset’s reduced value. Key for reporting real assets like PPE.

Solved Assignments

Accounting Audit Final Exam MCQs 2015

Multiple-choice questions covering key auditing and accounting principles.

Solved Assignments

Team A Week 5 Problems

Problem-solving set from Week 5, covering various academic concepts.

Solved Assignments

Sarbanes Oxley Act, GAAP and IFRS

Overview of the Sarbanes-Oxley Act and its impact on GAAP and IFRS compliance.

Solved Assignments

Midterm Exam on Governmental and Not-for-Profit Accounting

Midterm exam answers on governmental and non-profit accounting.

Solved Assignments

Changing the Accounting Information System

Discusses changing accounting information systems.

Solved Assignments

Government wide statements and Fund statements

Comparison of government-wide financial statements with fund-based financial reporting.

Solved Assignments

Understanding Internal Control and Audit Processes

An overview of internal control mechanisms and audit procedures in financial management.