Suppose that Royval Inc has the following data: Also suppose that Royval the has the followno batance sheet: the formulas you learned about in the previous stage of the problem to answer the following questions. ven the value of total assets turnover, along with the level of total assets given, this means that Royval's sales must be aven the value of DSO, along with the level of sales you already calculated, this means that Royal's receivables must be Given the value of the inventory ratio, along with the level of sales you aiready calculated, this means that Royval's inventories must be Given the value of the froed assets turnover ratio, as well as the level of sales, this means that Royvar's fixed assets must be equal to Solving for cash yields a value of cash of invertories, the level of curren labilites must be for Rorval Given the curtent ratio of 2 and values of cash, accounts receivable, and Given the lovel of retained earnings, curtert hablities, and lone term debt, along wah the relationship between total assets and total wabidies and equitr, this means that Rovvals common stock must be Aso suppose that forval the has the foliowing batance sheet According to the video, the current ratio can be written as a value of current liabilities of approximately - Plugging in the value for current assets and the value of the current ratio yieids According to the video, the value of total assets is equal to the value of total liabilities and equity In the video, total habilities and equity is equal to Given the lovel of total lisbilities and equity, as well as retained earnings, current liabinties and the level of long-term debt, solving for Rovval's common stock yieids According to the video, gross profit margin can be written a calculated, this means that Morval has a cest of goods sold of Given the aross profit margin and the levef of sales you have already Whow is time for vou to pracuce nhat you've searned according to the video, total assets turnover is equal to this means that Royval's sales must be Given the value of total assets turnover, along with the levei of total assets given According to the video, DSO (days sales outstanding) can be wntten as calculated, this means that Royvals recevables must be - Given the value of DSO, along with the level of sales you already According to the video, the inventory ratio can be writen as equal to Given the value of the inventory ratio, along with the level of sales you already caiculated, this means that Royral's imventones must be According to the video, the fored asset turnover ratio can be wntten as Y. This means that Roprat has fixed assets of According to the video, cash can be winten as total assets minus fixed assets, inveriones; and accounts roceivoble. This vields a value of cash of for Rowal Acrording to the vided, the current ratip can be whitten as. * value of currenk liabilioes of approsimately pugeing in the vatue for cumbet assets and the value of the current ratio vields Ncording to the viose, the value of total aswets is equai to the value of total habaties and couity - Civen ine gress protit macon and the
