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Sagot :
To complete the 2006 balance sheet for FAA Industry with the given information, we need to determine various financial figures. Here is the step-by-step breakdown of how to calculate these values:
1. Sales and Gross Profit Calculation:
- Sales: Br. 1,800,000
- Gross Profit Margin: 25%
- Gross Profit = Sales Gross Profit Margin = Br. 1,800,000 0.25 = Br. 450,000
2. Cost of Goods Sold (COGS):
- COGS = Sales - Gross Profit = Br. 1,800,000 - Br. 450,000 = Br. 1,350,000
3. Inventories Calculation:
- Inventory Turnover = 6 times
- Inventories = COGS / Inventory Turnover = Br. 1,350,000 / 6 = Br. 225,000
4. Average Collection Period and Accounts Receivable Calculation:
- Average Collection Period = 40 days
- Days in Year = 360
- Accounts Receivable = (Sales / Days in Year) Average Collection Period = (Br. 1,800,000 / 360) 40 = Br. 200,000
5. Total Current Assets Calculation:
- Cash: Br. 30,000
- Accounts Receivable: Br. 200,000
- Inventories: Br. 225,000
- Total Current Assets = Cash + Accounts Receivable + Inventories = Br. 30,000 + Br. 200,000 + Br. 225,000 = Br. 455,000
6. Total Assets Calculation:
- Total Asset Turnover Ratio: 1.20 times
- Total Assets = Sales / Total Asset Turnover Ratio = Br. 1,800,000 / 1.20 = Br. 1,500,000
7. Total Liabilities and Stockholders’ Equity Calculation:
- Debt Ratio: 60%
- Total Liabilities = Total Assets Debt Ratio = Br. 1,500,000 0.60 = Br. 900,000
- Stockholders' Equity = Br. 600,000
- Total Liabilities and Stockholders' Equity = Total Liabilities + Stockholders' Equity = Br. 900,000 + Br. 600,000 = Br. 1,500,000
8. Accounts Payable Calculation:
- Accounts Payable Percentage: 25%
- Accounts Payable = 25% of Total Liabilities = 0.25 * Br. 900,000 = Br. 225,000
9. Total Current Liabilities Calculation:
- Current Ratio: 1.60
- Total Current Liabilities = Total Current Assets / Current Ratio = Br. 360,000 / 1.60 = Br. 225,000
Now, putting all these values into the balance sheet:
FAA Industry Balance Sheet December 31, 2006
| Assets | Br. | Liabilities & Stockholders' Equity | Br. |
|-------------------------------|------------------|--------------------------------------|----------------|
| Cash | 30,000 | Accounts Payable | 225,000 |
| Marketable Securities | - | Notes Payable | - |
| Accounts Receivable | 200,000 (b)______| Accruals | - |
| Inventories | 225,000 (d)______| Total Current Liabilities | 225,000 (e)__-__?|
| Total Current Assets | 455,000 (f)__?_? | Long-term Debt | 675,000 (g) |
| Net Fixed Assets | 1,045,000 | Stockholders' Equity | 600,000 |
| Total Assets | 1,500,000 (i)____| Total Liabilities & Stock. Equity | 1,500,000 (j)__?|
Note:
- For net fixed assets, we used the value of Total Assets (1,500,000) minus Total Current Assets (455,000) = 1,045,000.
- Long-term debt is calculated as Total Liabilities (900,000) - Total Current Liabilities (225,000) = 675,000.
Thus, the balance sheet is correctly completed and balanced.
1. Sales and Gross Profit Calculation:
- Sales: Br. 1,800,000
- Gross Profit Margin: 25%
- Gross Profit = Sales Gross Profit Margin = Br. 1,800,000 0.25 = Br. 450,000
2. Cost of Goods Sold (COGS):
- COGS = Sales - Gross Profit = Br. 1,800,000 - Br. 450,000 = Br. 1,350,000
3. Inventories Calculation:
- Inventory Turnover = 6 times
- Inventories = COGS / Inventory Turnover = Br. 1,350,000 / 6 = Br. 225,000
4. Average Collection Period and Accounts Receivable Calculation:
- Average Collection Period = 40 days
- Days in Year = 360
- Accounts Receivable = (Sales / Days in Year) Average Collection Period = (Br. 1,800,000 / 360) 40 = Br. 200,000
5. Total Current Assets Calculation:
- Cash: Br. 30,000
- Accounts Receivable: Br. 200,000
- Inventories: Br. 225,000
- Total Current Assets = Cash + Accounts Receivable + Inventories = Br. 30,000 + Br. 200,000 + Br. 225,000 = Br. 455,000
6. Total Assets Calculation:
- Total Asset Turnover Ratio: 1.20 times
- Total Assets = Sales / Total Asset Turnover Ratio = Br. 1,800,000 / 1.20 = Br. 1,500,000
7. Total Liabilities and Stockholders’ Equity Calculation:
- Debt Ratio: 60%
- Total Liabilities = Total Assets Debt Ratio = Br. 1,500,000 0.60 = Br. 900,000
- Stockholders' Equity = Br. 600,000
- Total Liabilities and Stockholders' Equity = Total Liabilities + Stockholders' Equity = Br. 900,000 + Br. 600,000 = Br. 1,500,000
8. Accounts Payable Calculation:
- Accounts Payable Percentage: 25%
- Accounts Payable = 25% of Total Liabilities = 0.25 * Br. 900,000 = Br. 225,000
9. Total Current Liabilities Calculation:
- Current Ratio: 1.60
- Total Current Liabilities = Total Current Assets / Current Ratio = Br. 360,000 / 1.60 = Br. 225,000
Now, putting all these values into the balance sheet:
FAA Industry Balance Sheet December 31, 2006
| Assets | Br. | Liabilities & Stockholders' Equity | Br. |
|-------------------------------|------------------|--------------------------------------|----------------|
| Cash | 30,000 | Accounts Payable | 225,000 |
| Marketable Securities | - | Notes Payable | - |
| Accounts Receivable | 200,000 (b)______| Accruals | - |
| Inventories | 225,000 (d)______| Total Current Liabilities | 225,000 (e)__-__?|
| Total Current Assets | 455,000 (f)__?_? | Long-term Debt | 675,000 (g) |
| Net Fixed Assets | 1,045,000 | Stockholders' Equity | 600,000 |
| Total Assets | 1,500,000 (i)____| Total Liabilities & Stock. Equity | 1,500,000 (j)__?|
Note:
- For net fixed assets, we used the value of Total Assets (1,500,000) minus Total Current Assets (455,000) = 1,045,000.
- Long-term debt is calculated as Total Liabilities (900,000) - Total Current Liabilities (225,000) = 675,000.
Thus, the balance sheet is correctly completed and balanced.
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