Question
Assets: Cash................................................................... $ 2,500 Accounts receivable............................................ 3,000 Inventory........................................................... 6,500 Fixed assets........................................................ 8,000 Total assets............................................................. $20,000 Liabilities and stockholders equity: Short-term debt................................................. $ 3,000 Long-term debt..................................................
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Assets:
Cash...................................................................
$ 2,500
Accounts receivable............................................
3,000
Inventory...........................................................
6,500
Fixed assets........................................................
8,000
Total assets.............................................................
$20,000
Liabilities and stockholders equity:
Short-term debt.................................................
$ 3,000
Long-term debt..................................................
2,000
Stockholders equity...........................................
15,000
Total liabilities and stockholders equity..................
$20,000
Income before fixed charges and taxes.....................
$ 4,400
Interest payments....................................................
800
Lease payment........................................................
400
Taxes (35 percent tax rate)......................................
1,120
Net income (after-taxes)..........................................
$ 2,080
Given this information, what would...
- Return on equity be?
-
Quick ratio.
-
Long-term debt to equity.
-
Fixed-charge coverage.
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