Problem: Balance sheet analysis Complete the balance sheet and sales information that follows using the following financial data:
Debt ratio: 50%
Current ratio: 1.8x
Total assets turnover: 1.5x
Days sales outstanding: 36.5 daysa
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales=_ 25%
Inventory turnover ratio: 5x
Calculation is based on a 365-day year.
Balance Sheet
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 _____