Answered: Complete the balance sheet and sales…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data:

Total assets turnover: 1.4
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30%
Total liabilities-to-assets ratio: 45%
Quick ratio: 0.80
Days' sales outstanding (based on 365-day year): 36.5 days
Inventory turnover ratio: 3.75

Do not round intermediate calculations. Round your answers to the nearest whole dollar.

Partial Income Statement Information
Sales
$
560000
Cost of goods sold
392000
Balance Sheet
Assets
Liabilities and Equity
Cash
Accounts payable
Accounts receivable
Long-term debt
50,000
Inventories
Common stock
Fixed assets
Retained earnings
100,000
Total assets
400,000
Total liabilities and equity

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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