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% Acid test ratio 1.2 Asset turnover 1.5 times Day sales outstanding in accounts receivable 40 days Gross profit margin 30% Inventory turnover 6 times Balance sheet Cash ________ Accounts payable ________ Accounts receivable ________ Common stock RM15,000 Inventories ________ Retained earnings RM22,000 Plant & equipment ________ Total assets ________ Total liabilities ________ & capital Sales ________ Cost of goods sold ________
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%
Acid test ratio 1.2
Asset turnover 1.5 times
Day sales outstanding in accounts receivable 40 days
Gross profit margin 30%
Inventory turnover 6 times
Balance sheet
Cash ________ Accounts payable ________
Accounts receivable ________ Common stock RM15,000
Inventories ________
Plant & equipment ________
Total assets ________ Total liabilities ________
& capital
Sales ________
Cost of goods sold ________
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