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A firm has current liabilities of $500. Account receivables are $300 and inventory is $400. All other current assets equal $800. Long term assets are
A firm has current liabilities of $500. Account receivables are $300 and inventory is $400. All other current assets equal $800. Long term assets are $5000, long term liabities are $2500, sales is $8000, EBIT is $2000, interest expenses are $600 and net income is $100. Compute the following ratios:
Current ratio
Debt ratio
TIE
ROA
Current ratio
Debt ratio
TIE
ROA
DSO
Current ratio = total current assets/total current liabilities
Days Sales Outstanding (DSO) = (accounts receivable*365)/sales
Times Interest Earned (TIE) ratio = EBIT/interest expense
Total asset turnover = sales/total assets
Net profit margin = net income/sales
Return on total assets (ROA) = net income/total assets
Debt ratio = total liabilities/total assets
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