Question
For Question 9 , use the information provided below. Balance sheet : FYE 2050 FYE 2051 Current assets: Cash 14,588 17,631 Accounts receivable 35,258 41,019
For Question 9, use the information provided below.
Balance sheet:
| FYE 2050 | FYE 2051 |
|
Current assets: |
|
|
|
Cash | 14,588 | 17,631 |
|
Accounts receivable | 35,258 | 41,019 |
|
Inventory | 65,567 | 71,505 |
|
Net plant and equipment | 477,413 | $498,421 |
|
Total assets | $592,826 | $628,576 |
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable | $55,653 | $63,073 |
|
Notes payable | 21,895 | 25,324 |
|
Long-term debt | $58,000 | $62,000 |
|
Common stock and paid-in surplus | $60,000 | $60,000 |
|
Accumulated retained earnings | 397,278 | 418,179 |
|
Total liabilities and owners' equity | $592,826 | $628,576 |
|
|
|
|
|
Incomes statement:
FY 2051 |
| |
Sales revenues Cost of goods sold SG&A EBIT Interest expenses Net income | 730,200 495,000 85,000 150,200 42,000 86,560 |
|
Share information at the end of fiscal year 2051:
The number of shares outstanding: 200,000 shares
Price per share: $10
Question 9 [5 pts]
Determine (i) inventory turnover ratio and (ii) interest coverage ratio (based on EBIT) for FY 2051. Additionally, (iii) decompose the firms ROE by conducting the DuPont analysis. Provide all numbers in four decimal places (e.g., 0.78715= 0.7872).
Answer (show the steps/calculation toward your answer):
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started