10 Balance Sheet Assets: Cash and marketable securities Income statement Net sales (all credit) $10,000,000 $600,000 (3,000,000) 8 points 8 02:09:52 Accounts receivable inventories Prepaid expenses Total current assets Fixed assets Less: accum. depreciation. 900,000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income Common stock shares outstanding Market price (2,000,000) (250,000) (200,000) 4,550,000 (1.820,000) $2,730,000 INet fixed assets Total assets $5,925.000 $9,000,000 1,000,000 30.00 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's Jequity $800,000 700,000 50,000 $1,550,000 2,500,000 4,950,000 $9,000,000 Based on the information in the above table the return on equity is Based on the information in the above table the return on equity is 10 Multiple Choice ts 02.09:42 55.15% 17.56% O 44.86% 38.83% 11 Balance Sheet Assets: Cash and marketable securities income statement Net sales (all credit) $10,000,000 $600,000 (3,000,000) 8 points 8 02:09:31 Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum, depreciation. 900,000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net Income Common stock shares outstanding Market price (2,000,000) (250,000) (200,000) 4,550,000 (1,820,000) $2,730,000 Net fixed assets Total assets $5.925,000 $9,000,000 1,000,000 30.00 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's equity $800,000 700,000 50,000 $1,550,000 2,500,000 4,950,000 $9,000,000 Based on the information in the above table the inventory holding period is Total Habilities and owners equity $9,000,000 11 Based on the information in the above table the inventory holding period is 8 points Multiple Choice 8 02:09:21 0.5 days 182.5 days O 29.85 days 54.75 days 12 Balance Sheet Assets: Cash and marketable securities income statement Net sales (all credit) $10,000,000 $600,000 (3,000,000) 8 points 02:09:09 Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depreciation. 900.000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net Income Common stock shares outstanding Market price (2,000,000) (250,000) (200,000) 4,550,000 (1,820,000) $2,730,000 Net fixed assets Total assets $5,925.000 $9,000,000 1,000,000 30.00 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's Jequity $800,000 700,000 50,000 $1,550,000 2,500,000 4,950,000 $9,000,000 Based on the information in the above table the times interest earned is: FOLIU C. DR BU CAH 2 Vids Totalties and owners Jequity $9,000,000 12 Based on the information in the above table the times interest earned is: 8 points Multiple Choice 8 02:08:59 O 32.33 times. 23.75 times 21.75 times 19.00 times