1. All things being equal, what are the three (3) general concepts in making sound financial decisions? NAME all three:

Using CyberDragons financial information published in Modules:

2. Calculate ROE
3. Calculate ROA
4. What is the inventory amount needed to result in a quick ratio of 1.0 ?
5. What is the A/R turnover ratio if accounts receivables are reduced to $9,396?

22660/25523 18 320 DEBT RATIO .58 OR 58% . RATIOS: CURRENT CA/CLE 50190 90/25523 1.964 Quick = CA-IN/CL .88% COLLECTION PERIODE AR [(CRS410sos/ $ 129522 = 56 days AR TURNOVER = CR SALES/AR 2760/18320 = 6.14 TO/TA = 41523/21 890 = Times INTEREST EARNED (116): EBIT interp = 1520/3160 = 3.64x 12,7%81890 = 1.37% TOTAL ASSET TURNOVER (TATO) = SALOSTA GROSS PROFIT MARGIN = 27460/112, 760 = CROSS PRONT SALES = 24 OR 24% NET PROFIT MARGIN= NI/SALES 5016/112760 = .04 or 4% MARKET VALUE (PE RA7) PRICE ZAVRNINGS 20/3.86 = 5.18x Other Information Dividends paid on common stock Earnings retained in the firm Shares outstanding (000) Market price per share Book value per share Earnings per share vidends per share $2,800 2,216 1,300 20 26.44 3.86 2.15 CyberDragon's Balance Sheet (5000) Assets: Cash $2,540 Marketable securities 1,800 Aceounts receivable 18,320 Inventories 27,530 Total current assets 50,190 Plant and equipment 43,100 less accum deprec. 11,400 Net plant & equip. 31,700 Total assets 81,890 Liabilities & Equity: Accounts payable 9,721 Notes payable 8,500 Accrued taxes payable 3,200 Other current liabilities 4,102 Total current liabilities 25,523 Long-term debt (bonds) 22,000 Total liabilities 47,523 Common stock (S10 par) 13,000 Paid in capital 10,000 Retained earnings 11,367 Total stockholders' equity 34,3 Total liabilities equity 81 $112,76 (85,300) 27,460 (6,540) (15,940) 11,520 sales (all credit) CyberDragon's Cost of Goods Sold Income Statement Gross Profit Operating Expenses: Selling General & Administrative (9,400) Total Operating Expenses Earnings before interest and taxes (EBIT) Interest charges: Interest on bank notes: (850) Interest on bonds: (2,310) Total Interest charges Earnings before taxes (EBT) Times (assume 40%) Income (3,160) 8,360 (3,344) 5,016