Question
1.Current ratio=Current Assets/Current liabilities =(Cash+Accounts receivable+Inventory)/(Accounts payable+Notes payable+Accruals) =(77500+336000+241500)/(129000+84000+117000) =655000/330000 = 1.98 2.Days sales outstanding =(Annual receivable/Annual sales)*360days =(336000/1607500)*360 =75.25 days 3.Inventory turnover =COGS/Inventory =(1392000/241500)=
1.Current ratio=Current Assets/Current liabilities =(Cash+Accounts receivable+Inventory)/(Accounts payable+Notes payable+Accruals) =(77500+336000+241500)/(129000+84000+117000) =655000/330000 = 1.98
2.Days sales outstanding =(Annual receivable/Annual sales)*360days =(336000/1607500)*360 =75.25 days
3.Inventory turnover =COGS/Inventory =(1392000/241500)= 8.5.76
4.Total assets turnover =Sales/Total assets =(1607500/947500)=1.70
5.Profit margin=Net income/Sales =(27300/1607500)=1.70%
6.ROA =Net income/Total assets =(27300/947500)=2.88%
7.ROE =Net income/common equity =(27300/(3,00,000+61000) =27300/361000 =7.56%
8.Debt=Total debt/Total assets =(129000+84000+117000+256500)/(947500) =586500/947500 =61.90%
What is the Du Pont Equation :(profit margin)(TA turnover)(equity multiplier) = ROE and (NI/SALES)(SALES/TA)(TA/CE) =ROE?
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The ImpactAssets Handbook For Investors
Authors: Jed Emerson
1st Edition
1783087293, 978-1783087297
