The following information is from Andy's Pharmaceutical Inc.â€™s financial statements: Sales (all credit) $245,000 Total assets turnover 0.80 times Total debt...

70.2K

Verified Solution

Question

Finance

The following information is from Andy's Pharmaceutical Inc.â€™sfinancial statements:
Sales (all credit)
$245,000
Total assets turnover
0.80 times
Total debt to total assets
30.83%
Fixed asset turnover
1.1 times
Current ratio
4.04 times
Average collection period
29.68 days
Inventory turnover
7.42 times
Part A
Using the above listed ratios and data, compute the balance ofthe following accounts. Assume all sales are on credit and a360-day year. Round to the nearest dollar. [Hint: use ratioformulas to derive the requested values. The book presents 13 ratioformulas on pages 60 - 64]. Please show your work.
A) Current assets
B) Average daily credit sales
C) Accounts Receivable
D) Inventory
E) Current liabilities

Answer & Explanation Solved by verified expert

3.6 Ratings (661 Votes)

Answer Total Assets Turnover Sales Total Assets 080 245000 Total Assets Total Assets 306250 Total Debt to Total Assets Total Debt Total Assets 100 3083 Total See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Sales (all credit)	$245,000
Total assets turnover	0.80 times
Total debt to total assets	30.83%
Fixed asset turnover	1.1 times
Current ratio	4.04 times
Average collection period	29.68 days
Inventory turnover	7.42 times