Please complete the balance sheet using the ratios that have been provided below.
Inventory Turnover = Cost of Goods Sold/Inventory Hint: Sales – COSG = Gross Profit
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Cash $200,000 Accounts Payable $100,000
Marketable Sec. $100,000
Acct Rec ________ Notes Payable _______
Inventories ________ Accruals $100,000
Total Current Assets ________ Total Current Liabilities ________
Gross Fixed Assets $4,000,000
Less: Accum Dep. _________ Long Term Debt _________
Net Fixed Assets $ 3,400,000
Other Assets _________
Total Assets $ ________ Total Liabilities and Equity $________
RATIOS
Sales $4,000,000
Gross Profit Margin 25%
Days Sales Outstanding 45 days (Avg Collection Period) = AR/Avg Sales per day
Inventory Turnover 6.0 = COGS/Inventory
Total Asset Turnover .6 = Sales/Total Assets
Current Ratio 2.5 Current Assets/Current Liabilities
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