The Griggs Corporation has credit sales of 957600 Total asse

The Griggs Corporation has credit sales of $957,600. Total assets turnover Cash to total assets Accounts receivable turnover Inventory turnover Current ratio Debt to total assets 2.85 times 120 % 20 times 14 times 1.70 times 35 % Using the above ratios, complete the balance sheet. (Round your answers to the nearest whole number) GRIGGS CORPORATION Balance Sheet Assets Liabilities and Stockholders\' Equity Cash Accounts receivable Inventory Current debt Long-term debt Total debt Total current assets Equity Fixed assets Total debt and stockholders\' equity Total assets Hints References eBook & Resources

Solution

SOLUTION

GRIGGS Corporation

Balance sheet

Working Notes-

1. Total assets turnover = Sales / Total assets

2.85 = $957,600 / Total assets

Total assets =  $957,600 / 2.85 = $336,000

2. Cash to total assets = Cash / Total assets

1.20% = Cash / $336,000

Cash = $336,000 * 1.20% = $4,032

3. Accounts receivable turnover = Sales / Accounts receivable

20 = $957,600/ Accounts receivable

Accounts receivable =  $957,600 / 20 = $47,880

4. Inventory turnover = Sales / Inventory

14 = $957,600 /Inventory

Inventory = $957,600 / 14 = $68,400

5. Fixed assets = Total assets - Current assets

= $336,000 - $120,312

= $215,688

Current assets = Accounts receivable + Inventory + Cash

= $47,880 + $68,400 + $4,032 = $120,312

6. Current ratio = Current assets / Current liabilities

1.70 = $120,312/ Current liabilities

Current liabilities = $120,312/ 1.70 = $70,772

7. Debt to total assets = Total debt / Total assets

35% =  Total debt / $336,000

Total debt = $336,000*35% = $117,600

8. Long term debt = Total debt - Current debt

=  $117,600 - $70,772 = $46,828

Assets	Amount ($)	Liabilities and stockholder\'s Equity	Amount ($)
Cash	4,032	Current debt	70,772
Accounts receivable	47,880	Long term debt	46,828
Inventory	68,400	Total debt	117,600
Total current assets	120,312	Equity (Total assets - Total debt)	218,400
Fixed assets	215,688
Total assets	336,000	Total debt and stockholder\'s equity	336,000