Please help me solve these equations. Please show your work so that I can learn.
Gross profit margin = 70% Inventory turnover ratio = 5 times Sales = $4,000 Net profit margin = 5% Average collection period = 45 days Return on equity = 50% Return on assets = 20% Cash = $75 Current ratio = 2.50 times Accounts payable days = 30 days
Note: Of total sales, 80 percent are on credit and the remainder are cash sales. Assume a 360-day year.
Cash __________ Notes payable __________ Accounts receivable __________ Accounts payable __________ Inventory __________ Long-term debt __________ Net fixed assets __________ Equity __________ Total assets __________ Total liab. & equity __________
Please help me solve these equations. Please show your work so that I can learn.
Gross profit margin = 70% Inventory turnover ratio = 5 times Sales = $4,000 Net profit margin = 5% Average collection period = 45 days Return on equity = 50% Return on assets = 20% Cash = $75 Current ratio = 2.50 times Accounts payable days = 30 days
Note: Of total sales, 80 percent are on credit and the remainder are cash sales. Assume a 360-day year.
| Cash | __________ | Notes payable | __________ | |
| Accounts receivable | __________ | Accounts payable | __________ | |
| Inventory | __________ | Long-term debt | __________ | |
| Net fixed assets | __________ | Equity | __________ | |
| Total assets | __________ | Total liab. & equity | __________ |
Related questions
Given the financial statements for Jones Corporation and SmithCorporation:
| JONES CORPORATION | |||||||
| Current Assets | Liabilities | ||||||
| Cash | $ | 22,000 | Accounts payable | $ | 127,000 | ||
| Accounts receivable | 81,100 | Bonds payable (long term) | 85,600 | ||||
| Inventory | 50,000 | ||||||
| Long-Term Assets | Stockholders' Equity | ||||||
| Gross fixed assets | $ | 526,000 | Common stock | $ | 150,000 | ||
| Less: Accumulated depreciation | 150,700 | Paid-in capital | 70,000 | ||||
| Net fixed assets* | 375,300 | Retained earnings | 95,800 | ||||
| Total assets | $ | 528,400 | Total liabilities and equity | $ | 528,400 | ||
| Sales (on credit) | $ | 1,326,000 |
| Cost of goods sold | 790,000 | |
| Gross profit | $ | 536,000 |
| Selling and administrative expenseâ | 304,000 | |
| Depreciation expense | 59,800 | |
| Operating profit | $ | 172,200 |
| Interest expense | 14,500 | |
| Earnings before taxes | $ | 157,700 |
| Tax expense | 99,600 | |
| Net income | $ | 58,100 |
*Use net fixed assets in computing fixed asset turnover.
â Includes $13,500 in lease payments.
| SMITH CORPORATION | |||||||
| Current Assets | Liabilities | ||||||
| Cash | $ | 38,400 | Accounts payable | $ | 83,300 | ||
| Marketable securities | 12,700 | Bonds payable (long term) | 217,000 | ||||
| Accounts receivable | 74,300 | ||||||
| Inventory | 83,700 | ||||||
| Long-Term Assets | Stockholders' Equity | ||||||
| Gross fixed assets | $ | 504,000 | Common stock | $ | 75,000 | ||
| Less: Accumulated depreciation | 255,800 | Paid-in capital | 30,000 | ||||
| Net fixed assets* | 248,200 | Retained earnings | 52,000 | ||||
| Total assets | $ | 457,300 | Total liabilities and equity | $ | 457,300 | ||
*Use net fixed assets in computing fixed asset turnover.
| SMITH CORPORATION | ||
| Sales (on credit) | $ | 1,100,000 |
| Cost of goods sold | 640,000 | |
| Gross profit | $ | 460,000 |
| Selling and administrative expenseâ | 272,000 | |
| Depreciation expense | 56,500 | |
| Operating profit | $ | 131,500 |
| Interest expense | 24,300 | |
| Earnings before taxes | $ | 107,200 |
| Tax expense | 56,500 | |
| Net income | $ | 50,700 |
â Includes $13,500 in lease payments.
a. Compute the following ratios. (Use a360-day year. Do not round intermediate calculations. Input yourprofit margin, return on assets, return on equity, and debt tototal assets answers as a percent rounded to 2 decimal places.Round all other answers to 2 decimal places.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Complete the balance sheet and sales information in the table that follows for Hoffmeister Industries using the following financial data:
Debt ratio: 60%
Quick ratio: 1.25
Total assets turnover: 2.8
Days sales outstanding: 36 days*
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 23%
Inventory turnover ratio: 7.0
* Calculation is based on a 365-day year.
Round your answers to the nearest whole dollar.
Balance Sheet
| Cash | $ | Accounts payable | $ |
| Accounts receivable | $ | Long-term debt | $ 60,000 |
| Inventories | $ | Common stock | $ |
| Fixed assets | $ | Retained earnings | $ 97,500 |
| Total assets | $ 300,000 | Total liabilities and equity | $ |
| Sales | $ | Cost of goods sold | $ |
Given the BS and IS for Simmons Mfg. Co., compute the ratios on the next page. For each ratio indicate if Simmons is doing better or worse than the industry average by providing an âxâ in the appropriate box. SHOW CALCULATIONS ON NEXT PAGE BELOW THE CHART. 15 points
SIMMONS MANUFACTURING COMPANY
Balance Sheet
Assets Liabilities and Stockholdersâ Equity
Cash $ 15,000 Accounts Payable $ 21,000
Accts. Receivable 22,000 Notes Payable 20,000
Inventory 30,000 Accrued Expenses 5,000
Current Assets 67,000 Current Liabilities 46,000
Net Fixed Assets 73,000 Long-Term Debt 30,000
Stockholdersâ Equity 64,000
Total Liabilities +
Total Assets $ 140,000 Stockholders equity $140,000
Income Statement
Sales (80% credit) $120,000
Less: COGS 45,000
Gross Profit 75,000
Selling & Administrative Expenses 20,000
Rent Expense (lease) 8,000
EBIT 47,000
Interest Expense 5,000
EBT 42,000
Taxes (25%) 10,500
Net Income $ 31,500
Common Shares outstanding 15,000
EPS $ 2.10
| Ratio | Ratio For Simmons | Industry Average Ratios | Better | Worse |
| Profit margin | 17.5% | |||
| Return on assets | 20.8% | |||
| Return on equity | 35% | |||
| Receivables Turnover | 4.44x | |||
| Avg. Collection Period | 68.0 days | |||
| Fixed asset turnover | 2.4x | |||
| Total asset turnover | .76x | |||
| Quick Ratio | .85 | |||
| Debt to Total Assets | .45 | |||
| Times interest earned | 12.0x |
