Question: please help Suppose that Royval Inc has the following data: Also suppose that Royval Inc has the following balance sheet: Use the formulas you learned

please help
 please help Suppose that Royval Inc has the following data: Also
suppose that Royval Inc has the following balance sheet: 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

Suppose that Royval Inc has the following data: Also suppose that Royval Inc has the following balance sheet: 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 inveritory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be - Given the value of the foxed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets must be equal to Solving for cash yields a value of cash of for Royval. Given the current ratio of 2 and values of cash, accounts receivable, and inventories, the level of current liabilities must be Given the level of retained earrings, current liabilies, and long-term debt, along wht the relationship between total assets and total liabilities and equity, this means that Royval's corrumon stock must be Given the gross pront margin and the level of sales you have already calculated, this means that Royal has a cost of goods sold of equivalents, accounts receivable, and inventory. These are assets thot are expected to be converted to cash in short order. Fixed assets include net plant, property, and equipment, along with other long term assets. Similarly, the right side of the balance sheet is usually organized into two major categories: liabilities (money owed by the cornpany) and stockholders' equity, Current liabilities are claims that are due within one year. These types of liabilities typically consist of things like accounts payable, accruals, notes payable to banks. Long-term debt can include bonds with maturity dates far into the future. Stockholders' equity can be written as either the sum of paid in capital and retained eamings, or the difference between total assets and total liabilities. The vanous financial ratios commonly used to analyze the financial strength of a company can also be used to relate the various entres on the balance sheet together. For example, the current ratio is calculated by dividing current assets by current liabilities. Thus, in theory, if you knew the current ratio and the value of current liabilies, you could solve for the value of current assets by multiplying the current asset ratio by current liabilities. Additionally financial ratios can also be used to related items from the balance sheet to items in the income statement, such as sales or cost of goods sold. For example, the total assets tumover ratio can be calculated as sales (from the income statement) divided by total assets (from the balance sheet). In theory, if you know the total assets turnover ratio as well as the value of total assets, you can solve for sales by multiplying the total assets turnover ratio by total assets. True or False: Assets generally appear on the nght side of the balance sheet. True False Plant-equipment (net) would generally appear under on the balance sheet. Now it's time for you to practice what you've learned. Suppose that Royval Inc has the following data: Also suppose that Royval Inc has the following balance sheet: According to the video, total assets tumover is equal to . Given the value of total assets turnover, along wth the level of total assets given, this means that Royval's sales must be According to the video, DSO (days sales outstanding) can be written as - Given the value of DSO, along with the level of sales you already calculated, this means that Royval's recevables must be 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 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 of for Royval. According to the video, the current ratio can be written as - Plugging in the value for current assets and the value of the current ratio yields a value of current liablities of approximately According to the video, the value of total assets is equal to the value of total liabilities and equity. In the video, total liablities 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 - Given the gross profit margin and the level of sales you have already calculated, this means that Royval has a cost of goods sold of

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!