Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.7 Return on assets (ROA) 8.0% Return on equity (ROE) 10.0% Calculate Caulder's profit margin

Assume the following relationships for the Caulder Corp.:

Sales/Total assets 1.7
Return on assets (ROA) 8.0%
Return on equity (ROE) 10.0%

Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.

Profit margin: %

Debt-to-capital ratio: %

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1 Days sales outstanding: 36.5 daysa Inventory turnover ratio: 5 Fixed assets turnover: 3.0 Current ratio: 2.5 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 20% aCalculation is based on a 365-day year.

Do not round intermediate calculations. Round your answers to the nearest dollar.

Balance Sheet
Cash $ Current liabilities $
Accounts receivable Long-term debt 75,000
Inventories Common stock
Fixed assets Retained earnings 105,000
Total assets $300,000 Total liabilities and equity $
Sales $ Cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Directors Handbook

Authors: Glynis D Morris, Sonia McKay, Andrea Oates

5th Edition

1566768691, 978-1566768696

More Books

Students also viewed these Finance questions