Complete the balance sheet and sales information that follows using the following financial data:

Debt Ratio=45%. Current Ratio=2x. Total Asset turnover=1.7x. Days Outstanding=46 days. Gross Profit Margin on Sales (sales-cost of goods sold/sales)=15%. Inventory Turnover=5x. Calculation based on a 365 year. Round answer two decimal places.

Find: A. Cash, B. Accounts Payable, C. Accounts Receivable, D. Inventory, E. Common Stock, F. Fixed Assets, Retained Earnings = $232,000, Total Assets=$800,000, G. Total liabilities and Equity, H. Cost of Goods Sold

This is going to take a lot of math work. Write out every one of those equations. Then insert whatever numbers are given, whether it's part of the equation or the answer to the equation. Looks like a case where the accounting equation will come into play as well.

Then look for something you can solve. i.e. you have a division and you have the numerator and answer, and you need to solve for denominator. As you get numbers, they will plug into other equations and you can solve them as well, etc.

Give it a shot.

Quote:

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Originally Posted by morgaine300

This is going to take a lot of math work. Write out every one of those equations. Then insert whatever numbers are given, whether it's part of the equation or the answer to the equation. Looks like a case where the accounting equation will come into play as well.

Then look for something you can solve. i.e. you have a division and you have the numerator and answer, and you need to solve for denominator. As you get numbers, they will plug into other equations and you can solve them as well, etc.

Give it a shot.

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I gave it a shot and succeeded. Just the mere suggestion on how to conquor this problem was all I needed. Thanks for pointing me in the right direction! I actually enjoyed solving the problem once I was able to plug numbers in.

You're welcome. I love someone can take "pointing" and run with it.

And I'm glad you enjoyed it cause I hate these ratios. LOL.