Question
2. The following data apply to Campsey Computer Company. a. Calculate the Current ratio, Days sales outstanding, Inventory turnover, Total assets turnover, Net profit margin,
2. The following data apply to Campsey Computer Company. a. Calculate the Current ratio, Days sales outstanding, Inventory turnover, Total assets turnover, Net profit margin, Return on assets (ROA), Return on equity (ROE) and Debt ratio for Campsey. b. Construct the DuPont equation for Campsey. Campsey Computer Company: Balance Sheet as of December 31, 2009 Cash $ 77,500 Accounts payable $ 129,000 Receivables 336,000 Notes payable 84,000 Inventories 241,500 Other current liabilities 117,000 Total current assets $655,000 Total current liabilities $330,000 Net fixed assets 292,500 Long-term debt 256,500 Common equity 361,000 Total assets $947.500 Total liabilities and equity $947.500 Campsey Computer Company: Income Statement for Year Ended December 31, 2009 Sales $1,607,500 Cost of goods sold (1,353,000 Gross profit $ 254,500 Fixed operating expenses except depreciation 143,000 Earnings before interest, taxes, depreciation, and amortization $ 111,500 (EBITDA) Depreciation 41,500 Earnings before interest and taxes (EBIT) $ 70,000 Page 1 of 2 ( $ Interest Earnings before taxes (EBT) Taxes (40%) Net income 24,500) 45,500 18,200) 27.300 $
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