Suppose that Rayval Inc has the following data: Total assets turnover 1.25 Days sales outstanding Inventory turnover ratio Fixed assets turnover 36.5 days 5 4 Current ratio Gross profit margin on sales: 2 30.00% Also suppose that Royal Inc has the following balance sheet: Balance Sheet Assets Liabilities Cash Current Liabilities Accounts receivable Long-term debt $135,000 Inventories Common stock Fixed assets Retained earnings $130,000 Total assets $450,000 Total Liabilities and equity Sales Cost of goods sold Given the value of total assets turnover, along with the level According to the video, total assets tumover is equal to of total assets given, this means that Royal's sales must be $562,500.00 Arallax 385 Given the value of DSO, along According to the video, DSO (days sales outstanding) can be written as with the level of sales you already calculated, this means that Rayval's recevables must be $56,250.00 According to the video, the inventory ratio can be written as equal to Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be $112,500.00 According to the video, the fixed asset turnover ratio can be written as This means that Royval has fixed assets of According to the video, cash can be written as total assets minus fixed assets, inventories, and accounts receivable. This yields a value of cash or for Royval. According to the video, the current ratio can be written as and the value of the current ratio yields a value of current liabilities of approximately Plugging in the value for current assets According to the video, the value of total assets is equal to the value of total liabilities and equity. In the video, total liabilities and equity is equal to Given the level of total liabilities and equity, as well as retained earnings, current liabilities and the level of long-term debt, solving for Royval's common stock yields According to the video, gross profit margin can be written as of sales you have already calculated, this means that Royval has a cost of goods sold of Given the gross profit margin and the level Now it's time for you to practice what you've learned. Suppose that Royval Inc has the following data: 1.25 36.5 days 5 Total assets turnover Days sales outstanding Inventory turnover ratio Fixed assets turnover Current ratio Gross profit margin on sales: 4 2 30.00% Also suppose that Royval Inc has the following balance sheet: Balance Sheet Assets Liabilities Current Liabilities Cash Accounts receivable Long-term debt $128,250 Inventories Common stock Fixed assets Retained earnings $123,500 $427,500 Total assets Sales Total Liabilities and equity Cost of goods sold Use the formulas you learned about in the previous stage of the problem to answer the following questions. Given the value of total assets turnover, along with the level of total assets given, this means that Royval's sales must be Given the value of DSO, along with the level of sales you already calculated, this means that Royval's receivables must be Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be . Given the value of the fixed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets must be equal to $133,593.75 Solving for cash yields a value of cash of $133,593.75 for Royval. Given the current ratio of 2 and values of cash, accounts receivable, and inventories, the level of current liabilities must be $146,953.13 Given the level of retained earnings, current liabilities, and long-term debt, along with the relationship between total assets and total liabilities and equity, this means that Royval's common stock must be $28,796.87 Given the gross profit margin and the level of sales you have already calculated, this means that Rayval has a cost of goods sold of $374,062.50 Suppose that Rayval Inc has the following data: Total assets turnover 1.25 Days sales outstanding Inventory turnover ratio Fixed assets turnover 36.5 days 5 4 Current ratio Gross profit margin on sales: 2 30.00% Also suppose that Royal Inc has the following balance sheet: Balance Sheet Assets Liabilities Cash Current Liabilities Accounts receivable Long-term debt $135,000 Inventories Common stock Fixed assets Retained earnings $130,000 Total assets $450,000 Total Liabilities and equity Sales Cost of goods sold Given the value of total assets turnover, along with the level According to the video, total assets tumover is equal to of total assets given, this means that Royal's sales must be $562,500.00 Arallax 385 Given the value of DSO, along According to the video, DSO (days sales outstanding) can be written as with the level of sales you already calculated, this means that Rayval's recevables must be $56,250.00 According to the video, the inventory ratio can be written as equal to Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be $112,500.00 According to the video, the fixed asset turnover ratio can be written as This means that Royval has fixed assets of According to the video, cash can be written as total assets minus fixed assets, inventories, and accounts receivable. This yields a value of cash or for Royval. According to the video, the current ratio can be written as and the value of the current ratio yields a value of current liabilities of approximately Plugging in the value for current assets According to the video, the value of total assets is equal to the value of total liabilities and equity. In the video, total liabilities and equity is equal to Given the level of total liabilities and equity, as well as retained earnings, current liabilities and the level of long-term debt, solving for Royval's common stock yields According to the video, gross profit margin can be written as of sales you have already calculated, this means that Royval has a cost of goods sold of Given the gross profit margin and the level Now it's time for you to practice what you've learned. Suppose that Royval Inc has the following data: 1.25 36.5 days 5 Total assets turnover Days sales outstanding Inventory turnover ratio Fixed assets turnover Current ratio Gross profit margin on sales: 4 2 30.00% Also suppose that Royval Inc has the following balance sheet: Balance Sheet Assets Liabilities Current Liabilities Cash Accounts receivable Long-term debt $128,250 Inventories Common stock Fixed assets Retained earnings $123,500 $427,500 Total assets Sales Total Liabilities and equity Cost of goods sold Use the formulas you learned about in the previous stage of the problem to answer the following questions. Given the value of total assets turnover, along with the level of total assets given, this means that Royval's sales must be Given the value of DSO, along with the level of sales you already calculated, this means that Royval's receivables must be Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be . Given the value of the fixed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets must be equal to $133,593.75 Solving for cash yields a value of cash of $133,593.75 for Royval. Given the current ratio of 2 and values of cash, accounts receivable, and inventories, the level of current liabilities must be $146,953.13 Given the level of retained earnings, current liabilities, and long-term debt, along with the relationship between total assets and total liabilities and equity, this means that Royval's common stock must be $28,796.87 Given the gross profit margin and the level of sales you have already calculated, this means that Rayval has a cost of goods sold of $374,062.50