Question
a) Complete the following tables: Item Value Current assets $35,000 Current liabilities $15,000 Assets $230,000 Liabilities $130,000 Equity $100,000 Ratios Formula Calculations Is it in
a) Complete the following tables:
| Item | Value |
| Current assets | $35,000 |
| Current liabilities | $15,000 |
| Assets | $230,000 |
| Liabilities | $130,000 |
| Equity | $100,000 |
| Ratios | Formula | Calculations | Is it in red or green zone? |
| Current ratio |
|
|
|
| Debt-to-asset ratio |
|
|
|
| Item | Value |
| Gross revenue | $38,000 |
| Operating expenses | $21,000 |
| Depreciation | $2,000 |
| Interest expense | $4,000 |
| NFIO | $11,000 |
| Nonbusiness income | $17,000 |
| Income Taxes | $2,000 |
| Principal | $13,000 |
| Interest on term loans | $4,000 |
| Family living expenses | $14,000 |
| Ratios | Formula | Calculations | Is it in red or green zone? |
| Return on assets |
|
|
|
| Operating profit margin |
|
|
|
| Asset turnover ratio |
|
|
|
| Term debt coverage ratio |
|
|
|
ANSWER COMPLETELY:
- How would you summarize the financial position of this farmer?
- If you are a loan officer, will you give him/her a loan?
- Show that the Dupont identity for ROA holds. Show your calculations for full credit.
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International Economics
Authors: Thomas Pugel
16th Edition
9780078021770
