Complete the balance sheet and sales information in the table that follows for Isberg Industries

using the following financial data:
Total Debt Ratio:

50%

Quick Ratio:

0.80

Total Asset Turnover:

1.5

Days Sales in Inventory: 36 Days
Cash Ratio:

.25

Cost of Goods Sold

75% of Sales

Balance Sheet
Cash

Accounts Payable

Accounts Receivable

Long-term Debt

Inventories

Common Stock

Net Fixed Assets

Retained Earnings

Total Assets

300,000

Sales
1)
2)
3)
4)

5)
6)
7)
8)
9)
10)
11)

60,000
97,500

Total Liabilities & Equity
Cost of Goods Sold

TA = 300,000 = TL&Eq
TD
DR 0.50
TD 0.50 300,000 150,000
300,000
TD A / P LTD A / P 60,000 150,000
A / P 90,000
A / P LTD CS R / E TL & Eq
90,000 60,000 CS 97,500 300 ,000
CS 52,500
Sales
TAT 1.5
Sales 1.5 300 ,000 450 ,000
300 ,000
COGS 0.75 450,000 337 ,500
365
337 ,500
DSI 36 337 ,500
Inv 36
33,288
365
Inv

CA 33,288
CA 0.80 90,000 33,288 105,288
90,000
TA 300,000 105,288 NFA NFA 194,712
Cash
Cash Ratio 0.25
Cash 22,500
90,000
CA 105,288 22,500 A / R 33,288 A / R 49,500
QR

0.80

Isberg Ind (Ratio Analysis Problem).doc

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