Please help with the following problem.
Calculation is based on a 365-day year.
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 _____
Solution to your problem is provided in a separate excel file attached herewith. The solution is prepared in two parts.
Part 1- Full workings for Sales, COGS,Inventory,Total Debt,Account payable,Common stock,Current assets,Fixed assets,Account receivable and Cash Balance etc.
Let X be Sales
Total asset turnover = Sales/Total assets
X= 300000X1.5 = $450000
2 Gross Profit margin
let X be Gross profit margin
Gross profit margin = Gross profit/sales
.25 = X/ 450000
X= .25 X 450000
3 Cost of Goods ...
The solution answers the question below involving balance sheet analysis problems.