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Financial Statement Analysis and Balance Sheet Completion

A guide to analyzing financial statements and completing balance sheets for businesses.

Ethan Wilson
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Financial Statement Analysis and Balance Sheet CompletionFrom the values of the different ratios that follow, calculate the missing balance sheetitems and complete the balance sheet. (30 points)Sales $300,000Average collection period (days): 55Inventory Turnover (days) 40Debt to asset ratio 0.4Current ratio 2Total Asset turnover 1.5Fixed asset turnover 3Assets Liabilities & EquityCash $6,000Accounts payable $6,000Accounts Receivable _____$76,000Notes Payable _______Notes Payable = Total Current Liabilities-A/P-Accrued Expenses = $300,000-$6,000-$600=$293,400Inventory ______Inventory turnover =Sales / Inventory40=$300,000/InventoryThus, Inventory =$300,000/40=$7,500Accrued Expenses $600Prepaid expenses _______Total Current Liabilities ________Current Ratio =Current Assets / Current Liabilities3=$300,000/Current LiabilitiesThus, Current Liabilities=$300,000/3=$100,000Total Current Assets ________Total Current Assets = Total Assets-Fixed Assets=$200,000-$100,000=$100,000Debt to Assets ratio =Total Liabilities / Total Assets0.4=Total Liabilities/$200,000Thus, Total Liabilities=$200,000*0.4=$80,000Bonds Payable __________Bonds Payable = Total Liabilities-Current Liabilities =-$20,000Fixed Assets _________Fixed Asset Turnover=Sales/Fixed Assets3=$300,000/Fixed AssetsThus, Fixed Assets=$300,000/3=$100,000Common Stock $16,000

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Accounting

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