Explore BrainMass
Share

Ratios for Receivables and Fixed Assets

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

The following financial statement data are for Moonbeam Inc.
2015 2014 2013'

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$265,000 \$220,000 \$180,000
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 65,000 30,000
Property, plant, and equipment (net) . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000 155,000 160,000
For 2014 and 2015, compute:
(a) Accounts receivable turnover
(b) Average collection period
(c) Fixed asset turnover

Use the average of the beginning and ending asset balances in computing the ratios.

Solution Summary

Examples of how to calculate the above

\$2.19

The Griggs Corporation: Creating a Balance Sheet from Ratios

The Griggs Corporation has credit sales of 1,200,000. Given the following ratios, fill in the balance sheet below.

Total assets turnover - 2.4 times
Cash to total assets - 2.0%
Accounts receivable turnover - 8.0 times
Inventory turnover - 10.0 times
Current ratio - 2.0 times
Debt to total assets - 61.0%

Griggs Corporation
Balance Sheet 2008

Assets:
Cash
Accounts Receivable
Inventory
Total current assets
Fixed assets
Total assets

Liabilities and Stockholders Equity:
Current debt
Long-term debt
Total debt
Equity
Total debt and stockholders equity

I understand how to find total assets, total debt, net worth & cash. I'm confused on how to find current debt vs long term debt which prohibits finding the remainder of the problems. Thank you for your help :)

View Full Posting Details