Use the following information to complete the balance sheet below. a. Collection period: forty days b. Inventory
Question:
Use the following information to complete the balance sheet below.
a. Collection period: forty days
b. Inventory turnover: six times sales
c. Working capital requirement/sales: 20 percent
d. Liabilities/total assets: 60 percent
e. Cash in days of sales: twenty days
f. Short-term debt: 10 percent of total financial debt
Assume a 360-day year.
Transcribed Image Text:
Balance Sheet Cash Accounts receivable Inventory Total current asset Net fixed assets $ 400,000 Short-term debt Accounts payable Total current liabilitics Long-term debt Owners' equity Total liabilities and owners' equity Total assets $5,000,000
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Sales 20 days of sales 400000 360 days of sales 40000020 360 7200000 Accounts receivable 40 days of ...View the full answer
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Related Book For
Finance for Executives Managing for Value Creation
ISBN: 978-0538751346
4th edition
Authors: Gabriel Hawawini, Claude Viallet
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