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For A-P please include the math equation for how you get the answer? On the basis of the information contained in the company's financial statements
For A-P please include the math equation for how you get the answer?
On the basis of the information contained in the company's financial statements calculate and comment on Imperial Electronics Ltd.'s December 31, 2012, financial ratios by comparing them with industry average. The common shares are valued on the stock market at $120. a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d. Debt-to-equity ratio e. Time-interest-earned ratio f. Fixed-charges coverage ratio g. Average collection period h. Inventory turnover ratio i. Capital assets turnover ratio j. Total assets turnover ratio k. Profit margin on revenue ratio I. Return on revenue ratio m. Return on total assets ratio n. Return on equity ratio o. Earnings per share p. Price/earnings ratio In July 2013, management of Imperial Electronics Ltd. is planning to invest $3,000,000 to modernize its capital assets and expand. The management committee is considering borrowing funds from external sources. However, before meeting the investors, the committee wants to examine the amount that could be generated internally before June 30, 2013. Case 2: Imperial Electronics Ltd. Industry financial ratios are as follows: Assuming that the company is just as efficient as the industry in managing its inventories and trade receivables, calculate the amount of cash it would generate by June 30,2013 . Also, assume that in 2013 revenue will increase by 9%, return on revenue will be 5%, depreciation will increase to $400,000, and cost of sales in relation to revenue will improve to 72%. Imperial Electronics Ltd. Statement of Income For the year ended December 31, 2012 (in \$) Case 2: Imperial Electronics Ltd. Imperial Electronics Ltd. Statement of Financial Position As at December 31, 2012 (in \$)Step by Step Solution
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