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Given the following financial data, compute: a. Return on equity. b. Quick ratio. c. Long-term debt to equity. d. Fixed-charge coverage. Assets: Cash $ 2,500
Given the following financial data, compute:
a. Return on equity.
b. Quick ratio.
c. Long-term debt to equity.
d. Fixed-charge coverage.
Assets: |
|
Cash | $ 2,500 |
Accounts receivable | 3,000 |
Inventory | 6,500 |
Fixed assets | 8,000 |
Total assets | $20,000 |
|
|
Liabilities and stockholders equity: |
|
Short-term debt | $ 3,000 |
Long-term debt | 2,000 |
Stockholders equity | 15,000 |
Total liabilities and stockholders equity | $20,000 |
|
|
Income before fixed charges and taxes | $ 4,400 |
Interest payments | 800 |
Lease payment | 400 |
Taxes (35 percent tax rate) | 1,120 |
Net income (after-taxes) | $ 2,080 |
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