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4-1: Ratio Analysis 4-2: Liquidity Ratios 4-3: Asset Management Ratios 4-5: Profitability Ratios Problem Walk-Through

Formula Approach

Problem 4-22 Balance Sheet Analysis

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.7x Days sales outstanding: 41.5 days^a Inventory turnover ratio: 6x Fixed assets turnover: 3.5x Current ratio: 1.5x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35% ^aCalculation is based on a 365-day year. Round your answer to the nearest cent.

Balance Sheet
Cash	$		Current liabilities	$
Accounts receivable	$		Long-term debt	48,750
Inventories	$		Common stock	$
Fixed assets	$		Retained earnings	113,750
Total assets	$325,000		Total liabilities and equity	$
Sales	$		Cost of goods sold	$