Fixed Assets to Sales (1:3)

Fixed assets 1
=
Sales 3
2,600,000 1
=
Sales 3 = 7,800,000 (2,600,000 / 1*3)
Sales = 7,800,000

Fixed Assets to Current Assets (13:11)

Fixed Assets = 13
Current Assets 11
2,600,000 = 13
Current Assets 11 = 2,200,000 (2,600,000 / 13*11)
Current Assets = 2,200,000

Raw Material Consumption and Direct Wages

Sales 7,800,000
Gross Profit 1,170,000 (Sales * 15% = 7,800,000*0.15)
Cost of Good Sold 6,630,000
Raw Materials Used 1,326,000 (Raw Material Used (20% of COGS) = 6,630,000*0.20)
Direct Wages 663,000 (Direct Wages (10% of COGS) = 6,630,000*0.10)
Raw Materials Used = 1,326,000 Gross Profit
Direct Wages = 663,000

Stock of Raw Materials (3 months usage)

Raw Material Used * (3/12)
Raw Material Used 1,326,000
Stock of Raw Materials 331,500 (1,326,000 * 3/12)
Stock of Raw Materials = 331,500

Stock of Finished Goods (6% of Cost of Good Solds)

Cost of Good Solds 6,630,000
397,800 (6,630,000 * 0.06)
Stock of Finished Goods = 397,800

Current Liabilities (2:1)

Current Assets = 2
Current Liabilities 1
2,200,000 = 2
Current Liabilities 1 = 1,100,000
Current Liabilities = 1,100,000

Debt Collection on Period (60 days)

Average Collection Period = Debt Collection on Period/Credit Sales * 365
 Receivables * 60
Sales 365
Receivables * 60 = 1,282,192 (7,800,000 *60/365)
7,800,000 365
Receivables = 1,282,192

Long Term Loan to Current Liabilites (2:1)

Long Term Loan * 2
Current Liabilities 1
Long Term Loan * 2 = 2,200,000 (1,100,000 * 2/1)
1,100,000 1
Long Term Loan = 2,200,000

Cash Balance
Current Assets 2,200,000
Receivables -1,282,192
Raw Material Stock -331,500
Finished goods stock -397,800
Cash Balance 188,508
Cash Balance = 118,508

Net Worth
Fixed Assets 2,600,000
Current Assets 2,200,000
Total Assets 4,800,000
Less: Long Term Loan -2,200,000
Current Liabilities -1,100,000
Net Worth 1,500,000
Net Worth = 1,500,000

Net worth = Share capital + Retained Earnings = 1,500,000

Capital = 1
Retained Earnings 4
Share Capital = 1,500,000 * 1
5
= 300,000
Retained Earnings = 1,500,000 * 4
5
= 1,200,000
Share Capital = 300,000
Retained Earnings = 1,200,000
= 6,630,000*0.20)
30,000*0.10)
 AC2A Company AC2A Company
Income Statement Balance Sheet
December 31, 2022 December 31, 2022

Sales 7,800,000 ASSETS

Less: Cost of Goods Sold 6,630,000 Current Assets:
Gross Profit 1,170,000 Cash
Less: Operating Expenses 0 Stock of Raw Materials
NET INCOME 1,170,000 Stock of Finished Goods
Receivables
Non-current Assets
Fixed Assets
Total Assets

LIABILITIES
Current Liabilities
Non-current Liabilities
Total Liabilities

EQUITY
Share Capital
Retained Earnings
Total Equity
Total Liabilities and Equity
 AC2A Company
Balance Sheet
December 31, 2022

188,508
Raw Materials 331,500
inished Goods 397,800
1,282,192

2,600,000
4,800,000

2,200,000
1,100,000
3,300,000

300,000
1,200,000
1,500,000
4,800,000