Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.
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.
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.
