Complete the balance sheet and sales information using the following financial data

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
icon
Related questions
Question

Complete the balance sheet and sales information using the following financial data 

  • Total assets turnover: 1.5 X
  • Days sales outstanding: 36.5 days (Calculation is based on a 365-day year)
  • Inventory turnover ratio: 5 X
  • Fixed assets turnover: 3.0 X
  • Current ratio: 2.0 X
  • Gross profit margin on sales: (Sales - Cost of goods sold) ∕ Sales = 25%

Cash

------------

Current Liabilities

  --------

Accounts Receivables

------------

Long Term Liabilities

60000

Inventories

------------

Common Stock

  --------

Fixed Assets

------------

Retained Earnings

97500

Total Assets

300000

Total Liabilities and Equity

 ---------

Sales

 

Cost of goods sold

 ---------

Interpret the current ratio, total assets turnover ratio, inventory turnover ratio and profit margin on sales.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning