Sales According to the video, total assets turnover is equal to Total assets total assets given, this means that Royval's sales must be $750,000.00 According to the video, DSO (days sales outstanding) can be written as you already calculated, this means that Royval's recevables must be According to the video, the inventory ratio can be written as equal to you already calculated, this means that Royval's inventories must be According to the video, the fixed asset turnover ratio can be written as This yields a value of cash of for Royval. According to the video, the current ratio can be written as a value of current liabilities of approximately . Given the value of total assets turnover, along with the level of Receivables Annual salesx365 According to the video, cash can be written as total assets minus fixed assets, inventories, and accounts receivable. Given the value of DSO, along with the level of sales According to the video, gross profit margin can be written as calculated, this means that Royval has a cost of goods sold of . Given the value of the inventory ratio, along with the level of sales This means that Royval has fixed assets of Plugging in the value for current assets and the value of the current ratio yields According to the video, the value of total assets is equal to the value of total liabilities and equity. In the video, total liabilities and equity is equal to Given the level of total liabilities and equity, as well as retained earnings, current liabilities and the level of long-term debt, solving for Royval's common stock yields Given the gross profit margin and the level of sales you have already
Sales According to the video, total assets turnover is equal to Total assets total assets given, this means that Royval's sales must be $750,000.00 According to the video, DSO (days sales outstanding) can be written as you already calculated, this means that Royval's recevables must be According to the video, the inventory ratio can be written as equal to you already calculated, this means that Royval's inventories must be According to the video, the fixed asset turnover ratio can be written as This yields a value of cash of for Royval. According to the video, the current ratio can be written as a value of current liabilities of approximately . Given the value of total assets turnover, along with the level of Receivables Annual salesx365 According to the video, cash can be written as total assets minus fixed assets, inventories, and accounts receivable. Given the value of DSO, along with the level of sales According to the video, gross profit margin can be written as calculated, this means that Royval has a cost of goods sold of . Given the value of the inventory ratio, along with the level of sales This means that Royval has fixed assets of Plugging in the value for current assets and the value of the current ratio yields According to the video, the value of total assets is equal to the value of total liabilities and equity. In the video, total liabilities and equity is equal to Given the level of total liabilities and equity, as well as retained earnings, current liabilities and the level of long-term debt, solving for Royval's common stock yields Given the gross profit margin and the level of sales you have already
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Suppose that Royval Inc has the following data:
Gross profit margin on sales:
Total assets turnover
Days sales outstanding
Inventory turnover ratio
Fixed assets turnover
Current ratio
Cash
Accounts receivable
Inventories
Also suppose that Royval Inc has the following balance sheet:
Fixed assets
Total assets
Sales
Assets
1.5
36.5 days
$500,000
5
4
2
30.00%
Balance Sheet
Liabilities
Current Liabilities
Long-term debt
Common stock
Retained earnings
Total Liabilities and equity
Cost of goods sold
$115,000
$110,000
Transcribed Image Text:According to the video, total assets turnover is equal to
total assets given, this means that Royval's sales must be $750,000.00
According to the video, DSO (days sales outstanding) can be written as
you already calculated, this means that Royval's recevables must be
According to the video, the inventory ratio can be written as equal to
you already calculated, this means that Royval's inventories must be
Sales
Total assets
According to the video, the fixed asset turnover ratio can be written as
This yields a value of cash of
for Royval.
According to the video, the current ratio can be written as
a value of current liabilities of approximately
I
According to the video, gross profit margin can be written as
calculated, this means that Royval has a cost of goods sold of
Given the value of total assets turnover, along with the level of
Receivables
Annual salesx365
.
According to the video, cash can be written as total assets minus fixed assets, inventories, and accounts receivable.
Given the value of DSO, along with the level of sales
Given the value of the inventory ratio, along with the level of sales
This means that Royval has fixed assets of
Plugging in the value for current assets and the value of the current ratio yields
According to the video, the value of total assets is equal to the value of total liabilities and equity.
In the video, total liabilities and equity is equal to . Given the level of total liabilities and equity, as well as retained earnings, current
liabilities and the level of long-term debt, solving for Royval's common stock yields
Given the gross profit margin and the level of sales you have already
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education