Question
Financial Information: Net Income: $20,000,000 Depreciation Expense: $800,000 Increase in Accounts Receivable: $300,000 Decrease in Inventory: $500,000 Purchase of Equipment: $1,500,000 Questions: a) What is
Financial Information:
- Net Income: $20,000,000
- Depreciation Expense: $800,000
- Increase in Accounts Receivable: $300,000
- Decrease in Inventory: $500,000
- Purchase of Equipment: $1,500,000
Questions: a) What is the company's operating profit margin? b) Calculate the quick ratio. c) Determine the asset turnover ratio. d) What is the return on equity (ROE)? e) Calculate the price-to-earnings (P/E) ratio.
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
5th edition
73527076, 978-0077386214, 77386213, 978-0073527079
