Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me solve these equations. Please show your work so that I can learn. Gross profit margin = 70% Inventory turnover ratio = 5
Please help me solve these equations. Please show your work so that I can learn.
Gross profit margin = 70% Inventory turnover ratio = 5 times Sales = $4,000 Net profit margin = 5% Average collection period = 45 days Return on equity = 50% Return on assets = 20% Cash = $75 Current ratio = 2.50 times Accounts payable days = 30 days
Note: Of total sales, 80 percent are on credit and the remainder are cash sales. Assume a 360-day year.
Cash | __________ | Notes payable | __________ | |
Accounts receivable | __________ | Accounts payable | __________ | |
Inventory | __________ | Long-term debt | __________ | |
Net fixed assets | __________ | Equity | __________ | |
Total assets | __________ | Total liab. & equity | __________ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started