USA: +1 (725) 712-1730 
Sign in
Consider Fisher & Company’s annual financial data as follows. Fill in the blanks by calculating the appropriate accounting entries in the balance or the income statement. Assume a 365 days per year. (a) Find Fisher’s accounts receivable. The Fisher’s accounts receivable amount is $ million. (Round to two decimal places.) (b) Calculate the amount of current assets. The amount of current assets is $ million. (Round to two decimal places.) (c) Determine the amount of current liabilities. The amount of current liabilities is $ million. (Round to two decimal places.) (d) Determine the amount of total assets. The amount of total assets is $ million. (Round to two decimal places.) (e) Calculate the amount of the long-term debt. The amount of the long-term debt is $ million. (Round to two decimal places.) (f) Calculate the profit margin. The profit margin is %. (Round to two decimal places.) (g) Calculate the Return on Common Equity.
Expert Answer
- a) Average collection period = Accounts Receivable/ Annual Sales/365
= Accounts Receivable / $1,200/365
= 45 days
Accounts Receivable = 45(1200 / 365) = $147.95
b) Current assets = Cash and marketable securities + Accounts Receivable+ Inventory
= $100 + 148 + $180 = $428
c) Current ratio = Current assets / Current liabilities = $428 / Current liabilities = 3.2
Current liabilities = $428/3.2 = $134
d) Total assets = Currrent assets + Fixed assets = $428 + $280
= $708
e) Total assets = Currrent assets + Fixed assets = $428 + $280 = $708
Total assets = Common equity + Current liabilities + Long-term debt
$708 = $500 + $134 + Long-term liabilities
Long-term liabilities = $74
f) Profit-margin = Net income / Net sales = $358 / $1,200 = 0.298 or 30%
- g) Return on common equity = Net Income / Common equity = 358/500=71.6% or 72%
