Questions: Complete the Balance Sheet of General Aviation Inc. based on the following data. Key Financial Data (2005) 1. Sales totaled 720,000. 2. The gross profit margin was 38.7 percent. 3. Inventory turned 6 times (i.e inventory turnover is 6). 4. There are 360 days in a year. 5. The average collection period was 31 days. 6. The current ratio was 2.35. 7. The total asset turnover was 2.81. 8. The debt ratio was 49.4 percent. 9. Total current assets equal 159,565. please round to the nearest (full) dollar Balance Sheet of General Aviation Inc. As of December 31, 2005

To complete the balance sheet of General Aviation Inc., we need to calculate various components using the provided financial data. Let's break down the calculations step by step:

• Sales = $720,000
• Gross Profit Margin = 38.7%

\[ \text{Gross Profit} = \text{Sales} \times \text{Gross Profit Margin} \] \[ \text{Gross Profit} = 720,000 \times 0.387 = 278,640 \]

\[ \text{COGS} = \text{Sales} - \text{Gross Profit} \] \[ \text{COGS} = 720,000 - 278,640 = 441,360 \]

• Inventory Turnover = 6

\[ \text{Inventory} = \frac{\text{COGS}}{\text{Inventory Turnover}} \] \[ \text{Inventory} = \frac{441,360}{6} = 73,560 \]

• Average Collection Period = 31 days
• Sales per Day = \(\frac{\text{Sales}}{360}\)

\[ \text{Sales per Day} = \frac{720,000}{360} = 2,000 \]

\[ \text{Accounts Receivable} = \text{Sales per Day} \times \text{Average Collection Period} \] \[ \text{Accounts Receivable} = 2,000 \times 31 = 62,000 \]

• Total Asset Turnover = 2.81

\[ \text{Total Assets} = \frac{\text{Sales}}{\text{Total Asset Turnover}} \] \[ \text{Total Assets} = \frac{720,000}{2.81} = 256,227 \]

• Debt Ratio = 49.4%

\[ \text{Total Liabilities} = \text{Total Assets} \times \text{Debt Ratio} \] \[ \text{Total Liabilities} = 256,227 \times 0.494 = 126,075 \]

• Current Ratio = 2.35
• Total Current Assets = $159,565

\[ \text{Current Liabilities} = \frac{\text{Total Current Assets}}{\text{Current Ratio}} \] \[ \text{Current Liabilities} = \frac{159,565}{2.35} = 67,872 \]

\[ \text{Total Equity} = \text{Total Assets} - \text{Total Liabilities} \] \[ \text{Total Equity} = 256,227 - 126,075 = 130,152 \]

• Total Assets: $256,227
• Total Liabilities: $126,075
• Total Equity: $130,152
• Current Assets: $159,565
• Current Liabilities: $67,872
• Inventory: $73,560
• Accounts Receivable: $62,000

These calculations provide the necessary components to complete the balance sheet for General Aviation Inc.