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...
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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 |
------------ |
|
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.
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