Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must beGiven the value of the fixed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets mustbe equal toSolving for cash yields a value of cash ofinventories, the level of current liabilities must befor Royval. Given the current ratio of 2 and values of cash, accounts receivable, andGiven the level of retained earnings, current liabilities, and long-term debt, along with the relationship between total assets and total liabilities andequity, this means that Royval's common stock must beGiven the gross profit margin and the level of sales you have already calculated, this means that Royval has a cost of goods sold of Now it's time for you to practice what you've learned.Suppose that Royval Inc has the following data:Total assets turnoverDays sales outstandingInventory turnover ratioFixed assets turnoverCurrent ratioGross profit margin on sales:CashAlso suppose that Royval Inc has the following balance sheet:Accounts receivableInventoriesFixed assetsAssetsTotal assetsSales1.536.5 days54230.00%$425,000Balance SheetLiabilitiesCurrent LiabilitiesLong-term debtCommon stockRetained earningsTotal Liabilities and equityCost of goods sold$114,750$110,500

Ratio analysis is a quantitative method to know liquidity, operational efficiency, and profitability…

Now it's time for you to practice what you've learned. 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 Assets Total assets Sales 1.5 36.5 days 5 2 30.00% $425,000 Balance Sheet Liabilities Current Liabilities Long-term debt Common stock Retained earnings Total Liabilities and equity Cost of goods sold $114,750 $110,500

Now it's time for you to practice what you've learned. 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 Assets Total assets Sales 1.5 36.5 days 5 2 30.00% $425,000 Balance Sheet Liabilities Current Liabilities Long-term debt Common stock Retained earnings Total Liabilities and equity Cost of goods sold $114,750 $110,500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 15MC: The IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return...

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