Problem 1

CVS Stores Inc. reported the following ratios:

Debt to Assets = 60 percent Asset Turnover = 5x Fixed Asset Turnover = 12.037x Average Collection Period = 16.837 days

Current Ratio = 2

Quick Ratio = 1.1

Part A

Using the above listed ratios, compute the balance of the following accounts. Assume all sales are on credit and a 360-day year. Round to the nearest dollar. Please show your work:

a) Total liabilities

b) Sales

c) Fixed assets

d) Accounts receivable

e) Current assets

f) Current liabilities

g) Inventory

Part B

Complete the following balance sheet:

Cash	$	Current Liabilities	$
Accounts Receivable	$	Bonds Payable	$
Inventory	$	Total Liabilities	$
Total Current Assets	$	Stockholders equity	$
Fixed Assets	$
Total Assets	$325,000	Total Liabilities and Stockholders equity	$325,000