Statement of Financial Position

Assets

Cash P 27,000

Accounts receivable 45,000

Inventories 90,000

Fixed Assets 138,000

TOTAL ASSETS P300,000

Labilities and Equity

Accounts payable P 90,000

Long term Debt 60,000

Common Stock 52,500

Retained Earnings 97,500

TOTAL LIAB & EQUITY P300,000

1. Debt = (0.50)
= (0.50) (300,000)

= 150,000

2. Accounts payable = Debt – Long-term debt

= 150,000 - 60,000
= 90,000
3. Common stock = Total liabilities and equity – Debt – Retained earnings

= 300,000 - 150,000 - 97,500

= 52,500.

4. Sales = (1.5) (Total assets)

= (1.5) (300,000)
= 450,000.

5. Inventories = Sales
5

=450,000 /5

= 90,000

6. Accounts receivable = Sales / 365(DSO)

=450,000/ 365

=45,000.

7. Cash + Accounts receivable + Inventories = (1.8) (Accounts Payable)

Cash + 45,000 + $0,000 = (1.8) (90,000)

Cash + $135,000 = 162,000

Cash = 27,000.

8. Fixed assets = Total assets – (Cash + Accts rec. + Inventories)

Fixed assets = 300,000 – ($27,000 + $45,000 + $90,000)

Fixed assets = 138,000.

9. Cost of goods sold = (Sales) (1 – 0.25)

=  (450,000) (0.75)

=  337,500.