Describe how the managerial finance function is related to economics and accounting. Q2. Describe the legal forms of business organization. Q3. Discuss business taxes and their importance in financial decisions. Q4. Complete the 2012 balance sheet for OKeefe Industries using the information that follows it. OKeefe Industries Balance Sheet December 31, 2012 Assets Liabilities and Stockholders Equity Cash $33,720 Accounts payable $130,000 Marketable securities 27,000 Notes payable ________ Accounts receivable _______ Accruals 22,000 Inventories _______ Total current liabilities ________ Total current assets _______ Long-term debt ________ Net fixed assets _______ Stockholders equity $500,000 Total assets $ Total liabilities and stockholders equity $------ The following financial data for 2012 are also available: 1. Sales totaled $1,800,000. 2. The gross profit margin was 29%. 3. Inventory turnover was 4.0. 4. There are 365 days in the year. 5. The average collection period was 42 days. 6. The current ratio was 1.61. 7. The total asset turnover ratio was 1.22. 8. The debt ratio was 70%. Q4) Liquidity management Bauman Companys total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item 2009 2010 2011 2012 Total current assets $16,950 $21,900 $22,500 $27,000 Total current liabilities $9000 $12600 $12600 $17400 Inventory 6000 6900 6900 7200 a. Calculate the firms current and quick ratios for each year. Compare the resulting time series for these measures of liquidity. b. Comment on the firms liquidity over the 20092010 period. Q5) Inventory management Wilkins Manufacturing has annual sales of $4 million and a gross profit margin of 40%. Its end-of-quarter inventories are Quarter Inventory 1 $400000 2 800,000 3 1,200,000 4 200,000 a). Find the average quarterly inventory and use it to calculate the firms inventory turnover and the average age of inventory. b). Assuming that the company is in an industry with an average inventory turnover of 2.0, how would you evaluate the activity of Wilkins inventory?