You have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: Complete the...

You have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency.

Requirement:

1. Complete the balance sheet and sales data (fill in the blanks), using the following financial data:

               Debt/net worth                                                        60%

              Acid test ratio                                                            1.2

              Asset turnover                                                           1.5 times

              Day sales outstanding in accounts receivable     40 days

              Gross profit margin                                                   30%

              Inventory turnover                                                    6 times

Balance sheet

Cash                               ________                       Accounts payable     ________

Accounts receivable   ________                        Common stock         RM15,000

Inventories                   ________                        Retained earnings    RM22,000

Plant & equipment     ________

Total assets                  ________
Total liabilities
________

                                                                                   & capital

Sales                              ________

Cost of goods sold      ________