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Please help Isa and Shane fill-in-the blanks to their balance sheet and income statement given the following ratios: Debt ratio 50% Quick ratio 2 (Current
Please help Isa and Shane fill-in-the blanks to their balance sheet and income statement given the following ratios: | |||
Debt ratio | 50% | ||
Quick ratio | 2 | (Current Assets -Inventory)/Current Liabilities | |
Total Asset Turns | 3 | Net Sales/Assets | |
DSO's | 36.5 | AR/AverageDaily Sales | |
Gross Profit Margin | 50% | ||
Inventory Turns | 10 | COGS/Inventory | |
Balance Sheet ($M) | |||
Cash | Accounts Payable | ||
Accounts Receivable | Long-term Debt | $ 1,000 | |
Inventories | Common Stock | ||
Fixed Assets | Retained Earnings | $ 500 | |
Total Assets | $ 4,000 | Total Liabilities & Equity | |
Income Statement ($M) | |||
Sales | |||
Cost of Goods Sold | |||
Quick Ratio | 2 = | (Current Assets -Inventory)/Current Liabilities | |
2 = | (CA - Inv) / 1000 | ||
2000 = | Current Assets - Inventory | ||
2000 + inventory = | current assets | ||
2600 = | current assets | ||
Cash = | CA - Inv - AR | ||
Cash = | 2600 - 1200 - 600 | ||
Cash = | 800 | ||
Which makes fixed assets $1400 |
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