Complete the balance sheet and sales information in the table that follows for XYZ, Inc., using the
Question:
- Complete the balance sheet and sales information in the table that follows for XYZ, Inc., using the following financial data:
Show your work.
Total assets turnover: 1.5
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales: 25%
Total liabilities-to-assets ratio: 40%
Quick ratio: 0.80
Days sales outstanding (based on 365-day year): 36.5 days
Inventory turnover ratio: 3.75
Partial Income Statement Information
Sales ____________
=Total Assets: $400K x 1.5 (turnover ratio)
=$600,000
Cost of goods sold ____________
=600K - COGS/Sales: 25%
=600K - ($600K x 0.25)
=600K - $150K
=$450K
Balance Sheet Information
Cash ____________ Accounts payable ____________
Accounts receivable ____________ Long term debt 50,000
Inventories ____________ Common stock ____________
Fixed assets ____________ Retained earnings 100,000
Total assets$400,000._Total liabilities and equity $400,000
- In the provided scenario, you address the time value of money also known as discounted cash flow analysis. This type of analysis is crucial to being able to viably analyze financial statements.
The start-up firm you founded is trying to save $10,000 in order to buy a parcel of land for a proposed small warehouse expansion. In order to do so, your finance manager is authorized to make deposits of $1250 per year into the company account that is paying 12% annual interest. The last deposit will be less than $1250 if less is needed to reach $10,000.
- How many years will it take to reach the $10,000 goal and how large will the last deposit be?
Expert Answer:
