You have been asked by your CEO to evaluate, analyze and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debt/net worth 60% x 37,000 = 22,200 (debt) = AP Acid test ratio 1.2 x 22,200 = 26,640 Asset turnover 1.5 times Day sales outstanding in accounts receivable 40 days Gross profit margin 30% Inventory turnover 6 times Balance sheet Cash RM26,640 Accounts payable RM22,200 Accounts receivable RM9,867 Common stock RM15,000 Inventories ________ Retained earnings RM22,000 Plant & equipment ________ Total assets 59,200 Total liabilities ________ & capital Sales 88,800 Cost of goods sold _______
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You have been asked by your CEO to evaluate, analyze and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency.
Requirement:
- Complete the balance sheet and sales data (fill in the blanks), using the following financial data:
Debt/net worth 60% x 37,000 = 22,200 (debt) = AP
Acid test ratio 1.2 x 22,200 = 26,640
Asset turnover 1.5 times
Day sales outstanding in accounts receivable 40 days
Gross profit margin 30%
Inventory turnover 6 times
Balance sheet
Cash RM26,640 Accounts payable RM22,200
Accounts receivable RM9,867 Common stock RM15,000
Inventories ________
Retained earnings RM22,000Plant & equipment ________
Total assets 59,200 Total liabilities ________
& capital
Sales 88,800
Cost of goods sold ________
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