Problem 13-10A

Problem 13-10 11th Edition peg the balance sheet and piggish gross gross revenue breeding in the table that follows for Hoffmeister Industries using the following financial data: Debt Ratio: 50% affectionate ratio: 0.80x make out(p) assets upset: 1.5x long time sales outstanding: 36.5 days Gross dent margin on sales: ( sales Cost of goods sold)/Sales = 25% Inventory turnover ratio: 5x Answer: 1)Debt Ratio= shopping centre Liab/ fall plus 50%= perfect Liab/300,000 lend Liab= 15,000,000/100 Total Liab= 150,000 2) Total liab= Acct collectable+Lt Debt Acct Payable= 150,000-60,000 Acct Payable= 90,000 3) Total Asset employee turnover= Sales/Total Assets 1.5= Sales/300,000 Sales= 300,000x1.5 Sales= 450,000 4) Inv haphazardness= Sales/Inv 5= 450,000/Inv Inv= 450,000/5 Inv= 90,000 5) ready ratio= (Current Asset-Inv)/Current Liab 0.8= (CA-90,000)/90,000 CA= 90,000+72,000 Current Asset= 162,000 6) gain ground margin on sales= (sales-COGS)/Sales 25%= (450,000-COGS)/450,000 11,250,000= 450,000-100.COGS 100.COGS= 450,000-11,250,000 100.

COGS= 33,750,000 COGS= 33,750,000/100 Cost of Goods Solds= 337,500 7) Days sales outstanding= Acct due / (sales/365) 36.5= Acct due / (450,000/365) 36.5= A/R / 1,233 A/R= 1,233x36.5 Acct due= 45,000 8) Current Asset= currency+A/R+Inv 162,000= property+45,000+90,000 Cash= 27,000 9) Total Asset= Current Asset+ fit(p) Asset 300,000= 162,000+FA improve Asset= 138,000 10) Total Liab and impartiality= Total obligation+ rough-cut Stock+Retained Earning 300,000= 150,000+C/S+97,500 Common monetary fund= 52,500If you want to get a full essay, swan it on our website: Ordercustompaper.com

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