The Griggs Corporation has credit sales of $1,200,000. Given the following ratios, fill in the following balance sheet.
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 2011 Assets Liabilities and Stockholders’ Equity Cash ............................. _____ Current debt............................................. _____ Accounts receivable...... _____ Long-term debt........................................ _____ Inventory...................... _____ Total debt........................................... _____ Total current assets _____ Equity...................................................... _____ Fixed assets .................. _____ Total debt and stockholders’ equity _____ Total assets ............. _____
Based upon your calculations, which of the following is false? Select one:
a. Inventory is found by dividing sales by inventory turnover.
b. Accounts receivable is found by dividing receivables turnover by sales.
c. Accounts receivable is found by dividing sales by receivables turnover.
d. Current debt is found by dividing current assets by the current ratio.