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Answer the questions attached please and thank you. fa. What percentage of the lm's assets does the rm nance using debt (liabilities)? b. If Campbell
Answer the questions attached please and thank you.
\fa. What percentage of the lm's assets does the rm nance using debt (liabilities)? b. If Campbell were to purchase a new warehouse for $1.4 million and nance it entirely with longterm debt, what would be the rm's new debt ratio? {Related to Checkpoint 4.3} {Analyzing Protability] In 2016, the Allen Corporation had sales of $60 million, total assets of $42 million, and total liabilities of $24 million. The interest rate on the company's debt is 5.6 percent, and its tax rate is 35 percent. The operating prot margin is 13 percent. a. Compute the rm's 2016 net operating income and net income. b. Calculate the rm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the rm's liabilities.) {DuPont analysis) Dearborn Supplies has total sales of $196 million, assets of $96 million, a return on equity of 25 percent, and a net prot margin of 19 percent. What is the rm's debt ratio? {Efficiencyr analysis} ALei Industries has credit sales of $142 million a year. ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 35 days. a. What is the maximum level of accounts receivable that ALei can carry and have a 3541ay average collection period? b. If ALei's current accounts receivable collection period is 55 days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of 35 daysStep by Step Solution
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