Business AdministrationCSS

Q. No. 3 Completion of ABC Industries’ Balance Sheet for the Year Ending December 31, 2016

Balance Sheet

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ABC Industries Balance sheet ending December 31, 2016 Assets Liabilities and $ Cash $ stockholder’s Equity 120,000
Marketable securities 32,720 Accounts Payable Accounts receivable 25,000 Notes payable 20,000
Inventories Accruals


Total current assets Total current liabilities Net fixed assets Long-term debt
Total assets Stockholder’s equity 600,000
Total liabilities and stockholder’s equity
The following financial data for 2016 is also available;
(1) Sales totalled $1,800,000.
(2) The gross profit margin was 25%.
(3) Inventory turnover was 6.0.
(4) There are 365 days in the year.
(5) The average collection period was 40 days.
(6) The current ratio was 1.60
(7) The total asset turnover ratio was 1.20
(8) The debt ratio was 60%. complete the 2016 balance sheet for ABC Industries using the given information.

Answer

Given Information:

Q. no. 3 completion of abc industries' balance sheet for the year ending december 31, 2016

Steps to Calculate Missing Values:

1. Gross Profit Calculation:

Q. no. 3 completion of abc industries' balance sheet for the year ending december 31, 2016

2. Inventory Calculation:

Q. no. 3 completion of abc industries' balance sheet for the year ending december 31, 2016

3. Accounts Receivable Calculation:

Q. no. 3 completion of abc industries' balance sheet for the year ending december 31, 2016

4. Total Assets Calculation:

Q. no. 3 completion of abc industries' balance sheet for the year ending december 31, 2016

5. Current Liabilities Calculation:

Q. no. 3 completion of abc industries' balance sheet for the year ending december 31, 2016

6. Long-Term Debt Calculation:

Q. no. 3 completion of abc industries' balance sheet for the year ending december 31, 2016

7. Stockholder’s Equity Calculation:

Q. no. 3 completion of abc industries' balance sheet for the year ending december 31, 2016

Completed Balance Sheet for ABC Industries (December 31, 2016):

AssetsLiabilities and Stockholder’s Equity
Cash: $120,000Accounts Payable: ? (not given)
Marketable Securities: $32,720Notes Payable: $20,000
Accounts Receivable: $197,260Accruals: ? (not given)
Inventory: $225,000Current Liabilities: $359,363
Total Current Assets: $574,980Long-Term Debt: $540,637
Net Fixed Assets: ? (not given)Stockholder’s Equity: $600,000
Total Assets: $1,500,000Total Liabilities and Equity: $1,500,000

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