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Use the formulas you learned about in the previous stage of the problem to answer the following questions. Given the value of total assets turnover, along with the level of total assets given, this means that Royval's sales must be $540,000.00 Given the value of DSO, along with the level of sales you already calculated, this means that Royval's receivables must be $36,000.00 Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be $135,000.00 Given the value of the fixed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets must be equal to $108,000.00 Solving for cash yields a value of cash of and inventories, the level of current liabilities must be for Royval. Given the current ratio of 2.5 and values of cash, accounts receivable, Given the level of retained earnings, current liabilities, and long-term debt, along with the relationship between total assets and total liabilities ane equity, this means that Royval's common stock must be i Given the gross profit margin and the level of sales you have already calculated, this means that Royval has a cost of goods sold of

Intermediate Accounting: Reporting And Analysis

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...

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Suppose that Royval Inc has the following data:
Total assets turnover
Days sales outstanding
Inventory turnover ratio
Fixed assets turnover
Current ratio
Gross profit margin on sales:
Cash
Also suppose that Royval Inc has the following balance sheet:
Accounts receivable
Inventories
Fixed assets
Total assets
Assets
Sales
1.5
36.5 days
4
$360,000
5
2.5
20.00%
Balance Sheet
Liabilities
Current Liabilities
Long-term debt
Common stock
Retained earnings
Total Liabilities and equity
Cost of goods sold
$104,000
$96,000

Use the formulas you learned about in the previous stage of the problem to answer the following questions.
Given the value of total assets turnover, along with the level of total assets given, this means that Royval's sales must be $540,000.00
Given the value of DSO, along with the level of sales you already calculated, this means that Royval's receivables must be $36,000.00
Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventores must be
$135,000.00. Given the value of the fixed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets must
be equal to $108,000.00
Solving for cash yields a value of cash of
and inventories, the level of current liabilities must be
for Royval. Given the current ratio of 2.5 and values of cash, accounts receivable,
Given the level of retained earnings, current liabilities, and long-term debt, along with the relationship between total assets and total liabilities and
equity, this means that Royval's common stock must be
Given the gross profit margin and the level of sales you have already calculated, this means that Royval has a cost of goods sold of

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