a) Complete the balance Sheet and Sales information in the table that follows for Johnson Company using the following in
Posted: Mon Apr 25, 2022 7:30 am
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 _______
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 _______