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Table That Follows For Hoffmeister Industries Using The Following Financial Data

This document provides financial information for Hoffmeister Industries and uses that data to complete a balance sheet and sales information table. It gives the debt ratio, quick ratio, total assets turnover, days sales outstanding, and gross profit margin. It then calculates various line items on the balance sheet like accounts payable, common stock, inventory, accounts receivable, cash, and fixed assets to fully complete the balance sheet and sales information table.

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Hamza Zain
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1K views3 pages

Table That Follows For Hoffmeister Industries Using The Following Financial Data

This document provides financial information for Hoffmeister Industries and uses that data to complete a balance sheet and sales information table. It gives the debt ratio, quick ratio, total assets turnover, days sales outstanding, and gross profit margin. It then calculates various line items on the balance sheet like accounts payable, common stock, inventory, accounts receivable, cash, and fixed assets to fully complete the balance sheet and sales information table.

Uploaded by

Hamza Zain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q12.

Complete the balance sheet and sales information in the


table that follows for Hoffmeister Industries using the following
financial data:

Debt ratio: 50%


Quick ratio: 0.80x
Total assets turnover: 1.5x
Days sales outstanding / average collection period: 36
days*
Gross profit margin on sales: (sales – cost of goods
sold)/sales = 25%
Inventory turnover ratio: 5x
*Calculation is based on a 360 day year.

Balance Sheet
Assets $ Liabilities & $
Equity
Cash Accounts payable
Accounts receivable Long-term debt 60,000
Inventory Common stock
Fixed assets Retained earnings 97,500
Total Assets 300,000 Total Liabilities &
Equity

Sales Cost of Goods Sold


Total Assets = Total Liabilities & Equity = 300,000
Sales = 300,000 x 1.5 = 450,000.
Sales = 100% CGS = 75% GPM = 25%
Cost of goods sold = 450,000 x .75 = 337,500
Accounts payable = ( x + 60,000) / 300,000 x 100 =
50%
X = ( 300,000 x .50 ) - 60,000 = 90,000.
Common Stock = 300,000 - 97,500 - 90,000 - 60,000
\
= 52,500.
Inventory = 337,500 / 5 = 67,500.
Account receivable turnover = 360 / 36 = 10
Accounts receivable = 450,000 / 10 = 45,000.
Total current assets except inventory = 90,000 x .8 =
139,500
Cash = 139,500 - 45,000 = 94,500.
Fixed Assets = 300,000 - 94,500 - 45,000 - 67,500
= 93,000.
Balance Sheet
Assets $ Liabilities & Equity $
Cash 94,500 Accounts payable 90,000
Accounts receivable 45,000 Long-term debt 60,000
Inventory 67,500 Common stock 52,500
Fixed assets 93,000 Retained earnings 97,500
Total Assets 300,000 Total Liabilities & Equity 300,000

Sales 450,000 Cost of Goods Sold 337,500

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