Complete the following balance sheet for the Laura\'s Limited using the followin
ID: 2701639 • Letter: C
Question
Complete the following balance sheet for the Laura's Limited using the following information:
Debt to Assets = 55 percent
Quick Ratio = 1.2
Asset Turnover = 5x
Fixed Asset Turnover = 12.037x
Current Ratio = 2
Average Collection Period = 16.837 days
Cash
Current Liabilities
Receivables
Bonds Payable
Inventory
Total Liabilities
Total Current Assets
Net Worth
Plant and Equipment
Total Assets
372,000
Total Liabilities & Net Worth
Cash
Current Liabilities
Receivables
Bonds Payable
Inventory
Total Liabilities
Total Current Assets
Net Worth
Plant and Equipment
Total Assets
372,000
Total Liabilities & Net Worth
Explanation / Answer
Debt to assest = 0.55
total liabilities/total assests = 0.55
tottal liabilities = 0.55 * 372000 = 204600
assest turnover -= 5
sales/totalltotal assests = 5
sales = 5 * 372000 = 1860000
avearge collection period = 16.837
recievable * 365/sales = 16.837
recievables = 85780
Fixed Asset Turnover = 12.037
Sales / Plant and Equipment = 12.037
plant abd equipment = 1860000/12.037 = 154524
Current Assets = Total Assets %u2013 Plant and Equipment
current assests = 372000 - 154524 = 217476
Current Ratio = 2
Current Assets / Current Liabilities = 2
current liabilities = 217476/2 = 108738
Bonds Payable = Total Liab. %u2013 Current Liab.
bond payable = 204600 - 108738 = 95862
Total Liabilities and Net Worth = Total Assets
Total Liabilities and Net Worth = 372000
Net Worth = Total Liab and Net Worth %u2013 Total Liab
net worth = 372000 - 204600 = 167400
Quick Ratio = 1.2
(Cash + Receivables) / Current Liabilities = 1.2
cash + recievable = 130485.6
cash = 44706
Inventory = Total Current Assets %u2013 Receivables %u2013 Cash
inventory = 217476 - 85780 - 44706 = 86990