Problem:
The balance sheet for Cole Enterprises is shown below. You should fill in its remaining items based on the information below.
NOTE: Below the balance sheet, show how you calculated each item so that I can give you partial credit in case you make an error.
1. Sales totaled $110,000
2. The gross profit margin was 25 percent.
3. Inventory turnover was 3.0 times.
4. Assume there are 360 days in the year when doing your ratios.
5. The days sales outstanding (average collection period) was 65 days.
6. The current ratio was 2.40.
7. The total asset turnover was 1.13 times.
8. The debt ratio was 53.8 percent.
You should round all answers to the nearest dollar.
Answers:
Cole Enterprises Balance Sheet
Cash $4,500 Accts Payable $10,000
Accts Rec ______ Notes Payable ______
Inventory ______ Accruals $1,000
Total Current Assets ______ Total Current Liabilities ______
Net Plant and Equipment ______ Long-term bonds ______
Total Assets ______ Total Liabilities (debt) ______
Stockholder's Equity (SE) ______
Total Liabilities and SE ______