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.

© BrainMass Inc. brainmass.com October 25, 2018, 9:17 am ad1c9bdddf
https://brainmass.com/business/financial-ratios/ratios-for-receivables-and-fixed-assets-569562

Solution Summary

Examples of how to calculate the above

$2.19
See Also This Related BrainMass Solution

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