(Evaluating liquidity) The Tabor Sales Company had a gross profit margin (gross profits sales) of 30.4 percent and sales of $0.2 milion last year Seventy-five percent of the firm's sales are on credit and the remainder are cash sales. Tabor's current assets equal $2.6 million, its current abilities oqual $200,000, and it has $95.000 in cash plus marketable securities a. If Tabor's accounts receivable are $562,500, what is its average collection period? b. If Tabor reduces its average collection period to 20 days, what will be its new level of accounts receivalo? c. Tabor's inventory turnover ratio is 9.7 times. What is the level of Tabor's inventories? a. If Tabor's accounts receivable are $562,500, its average collection period is days. (Round to two decimal places.) b. If Tabor reduces its average collection period to 20 days, its new level of accounts receivable will be $ (Round to the nearest dollar.) c. If Tabor's inventory turnover ratio is 9.7 times, the level of Tabor's inventories is $ . (Round to the nearest dollar) (Market value ratios) Garret Industries has a pricelearnings ratio of 16.31X. a. If Garret's earnings per share is $1.65, what is the price per share of Garret's stock? b. Using the price per share you found in part a, determine the price/book ratio if Garret's equity book value per share is $8.98. a. The price per share of Garret's stock is $ (Round to the nearest cent.) b. Garret's price/book ratio is X. (Round to two decimal places.) (Economic value added) Drew Concrete uses Economic Value Added as a financial performance measure. Drew has $250 million in assets, and the firm has financed its assets with 55% equity and 45% debt with an interest rate of 8%. The firm's opportunity cost on its funds is 14%, while the operating return on the firm's assets is 11% a. What is the Economic Value Added created or destroyed by Drew Concrete? b. What does Economic Value Added measure? a. What is the Economic Value Added (EVA) created or destroyed by Drew Concreto? Entor a positive number for EVA created or a negative number for EVA destroyed S million (Round to one decimal place.) b. What does Economic Value Added measure? (Select the best choice below) O A. Economic Value Added (EVA) provides an approach to evaluate a firm's performance in terms of shareholder value creation OB. Economic Value Added (EVA) measures the rate of returneamed on the common stockholders investment OC. Economic Value Added (EVA) provides an approach to indicate the rate of ratum eamed on the finis assets O D. Economic Value Added (EVA) measures a firm's ability to meet its interest payments from its annual operating earnings (Evaluating profitability) The Malia Corporation had sales in 2015 of $70 million, total assets of $40 million and total liabilities of $25 million. The interest rate on the company's debt is 6.8 percent and its tax rate is 30 percent. The operating profit margin was 12 2 percent. What were the company's operating income and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt. The operating income was $ (Round to the nearest dollar.) The net income was su (Round to the nearest dollar) The operating return on assets was %. (Round to one decimal place.) The return on equity was %. (Round to one decimal place.)
