a) Complete the balance Sheet and Sales information in the table that follows for Johnson Company using the following in

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a) Complete the balance Sheet and Sales information in the table that follows for Johnson Company using the following information (all sales are on credit):

Debt Ratio - 60%

Inventory Turnover Ratio- 5.0 times

Net Profit Margin -10%

Total asset Turnover-2.0 times

Quick ratio- 1.0 times

Average Collection period- 45 days

Gross profit margin- 25%

Return on Equity- 50%


Balance sheet

Cash ? Account Payable ?

Account Receivables ? Long term debt $180,000

Inventories ? Common Stock ?

Fixed Assets ? Retained Earnings 200,000

Total Assets $1,000,000 Total Liabilities and S.E ?



b) Fill in Johnson’s net sales and cost of goods sold on the lines below


Net Sales _______

Cost of goods Sold _______