Question
Answer ALL Questions The following data apply to K-Mart (millions of dollars): Cash and Marketable Securities $100 Fixed Assets $283.50 Sales $1,000 Net Income $50.00
Answer ALL Questions
The following data apply to K-Mart (millions of dollars):
| Cash and Marketable Securities | $100 |
| Fixed Assets | $283.50 |
| Sales | $1,000 |
| Net Income | $50.00 |
| Quick Ratio | 2.0X |
| Current Ratio | 3.0X |
| Days Sales Oustanding | 40 days |
| Return on Equity | 12% |
Find K-Marts (1) accounts receivable (2) current liabilities (3) current assets, (4) total assets, (5) Return On Assets, (6) common equity, and (7) long-term debt
Hint: For Q (1) begin with the equation for Days Sales Outstanding= (Acc. Receivable over Sales/360), then solve for A/R
b) Suppose you were a potential investor, explain why would you be interested in free cash flow more than net income?
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The Business Strategy Audit
Authors: Vernal Della-Piana, Murray Low, Kendall Lyman
1st Edition
978-0955970740
