You have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to
Question:
You have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency.
Requirement:
- Complete the balance sheet and sales data (fill in the blanks), using the following financial data:
Debt/net worth 60%
Acid test ratio 1.2
Asset turnover 1.5 times
Day sales outstanding in accounts receivable 40 days
Gross profit margin 30%
Inventory turnover 6 times
Balance sheet
Cash ________ Accounts payable ________
Accounts receivable ________ Common stock RM15,000
Inventories ________ Retained earnings RM22,000
Plant & equipment ________
Total assets ________ Total liabilities ________
& capital
Sales ________
Cost of goods sold ________
Expert Answer:
Debt Net worth 60 account payableCommon stock retained earning 06 account pa... View the full answer
