Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sales $ 2,000,000 Gross profit margin 20% Inventory turnover ratio (Cost of goods sold/Inventory) 25 Net profit margin 4% Average collection period 45 Return on
Sales | $ 2,000,000 |
Gross profit margin | 20% |
Inventory turnover ratio (Cost of goods sold/Inventory) | 25 |
Net profit margin | 4% |
Average collection period | 45 |
Return on equity | 25% |
Accumulated depreciation | $ 75,000 |
Return on assets | 12.5% |
Accounts payable days | 18 |
Notes payable | $ 18,000 |
Gross fixed assets | $ 400,000 |
Percent of sales on credit (remainder are cash sales) | 80% |
NOTE: Assume a 360 day year for all ratios, etc. |
Cash = ____________.
Long-term debt = ____________.
Total assets =____________.
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