Given the sales totaling $40,000,000 and various ratios, we can calculate the requested values.

a. Gross Profits Ratio = 80 %

X = 32.000.000
b. Cost of Goods Sold
Cost of Goods Sold = Sales - Gross Profit Cost of Goods Sold
= $40,000,000 - $32,000,000 Cost of Goods Sold = $8,000,000

c. Operating Profits Ratio = 35 %

35 % =
= Operating Profit = $40,000,000 * 35% = $14,000,000

d. Operating Expenses Operating Expenses

= Gross Profit - Operating Expenses = Operation Profit
32.000.000 – X = 14.000.000
Operating Expenses = $18,000,000

e. Earnings Available for Common Stockholders (net profit )

Net profit margin = 8 % = =
Earnings Available = $40,000,000 * 8% = Earnings Available = $3,200,000

f. Total Assets
Total Asset Turnover = Sales / Total Assets Total Assets= 2
= $40,000,000 / Total Assets =2
Total Assets = $20,000,000

g. Total Common Stock Equity

Return on Common Equity =20 %
Net Profit / Total Common Stock Equity Total Common Stock Equity =20 %
= Net Profit / Return on Common Equity Total Common Stock Equity
= $3,200,000 / Total Common Stock Equity=20 %
Total Common Stock Equity =3.200.000 / 20 % = $16,000,000
h. Accounts Receivable
Average Collection period =62.2 day

Average Collection period =

AR = 62.2 *