Problem 13-10A

Problem 13-10
11th Edition

Complete the balance sheet and gross gross sales information in the table that follows for Hoffmeister Industries using the following financial data:
Debt Ratio: 50%
Quick ratio: 0.80x
make out assets turnover: 1.5x
Days sales outstanding: 36.5 days
Gross simoleons margin on sales: (Sales Cost of goods sold)/Sales = 25%
Inventory turnover ratio: 5x

Answer:

1)Debt Ratio= core Liab/ fall Asset
50%= Total Liab/300,000
Total Liab= 15,000,000/100
Total Liab= 150,000

2) Total liab= Acct Payable+Lt Debt
Acct Payable= 150,000-60,000
Acct Payable= 90,000

3) Total Asset employee turnover= Sales/Total Assets
1.5= Sales/300,000
Sales= 300,000x1.5
Sales= 450,000

4) Inv disturbance= Sales/Inv
5= 450,000/Inv
Inv= 450,000/5
Inv= 90,000

5) Quick ratio= (Current Asset-Inv)/Current Liab
0.8= (CA-90,000)/90,000
CA= 90,000+72,000
Current Asset= 162,000

6) Profit margin on sales= (sales-COGS)/Sales
25%= (450,000-COGS)/450,000
11,250,000= 450,000-100.COGS
100.COGS= 450,000-11,250,000
100.



COGS= 33,750,000
COGS= 33,750,000/100
Cost of Goods Solds= 337,500

7) Days sales outstanding= Acct due / (sales/365)
36.5= Acct due / (450,000/365)
36.5= A/R / 1,233
A/R= 1,233x36.5
Acct Receivable= 45,000

8) Current Asset= specie+A/R+Inv
162,000= Cash+45,000+90,000
Cash= 27,000

9) Total Asset= Current Asset+ fit(p) Asset
300,000= 162,000+FA
Fixed Asset= 138,000

10) Total Liab and Equity= Total obligation+ roughhewn Stock+Retained Earning
300,000= 150,000+C/S+97,500
Common stock= 52,500If you want to get a full essay, swan it on our website: Ordercustompaper.com



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