Good morning,

I am struggling with these questions. Can you please review and recommend solutions. Thank you!

1.Mr. Husker's Tuxedos Corp. ended the year 2015 with an average collection period of 38 days. The firm's credit sales for 2015 were $56.7 million.

What is the year-end 2015 balance in accounts receivable for Mr. Husker's Tuxedos?

Here is my solution: 38/365 = .10

.10*56.7=5.90M

However, this is not correct? What am I doing wrong?

2. You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $36.50 million in assets with $33.25 million in debt and $3.25 million in equity. LotsofEquity, Inc. finances its $36.50 million in assets with $3.25 million in debt and $33.25 million in equity.

Debt Ratio: Total Debt/Total Assets

Here is my solution - Lots of Debt - 33.25/36.50=.91

Lots of Equity - 3.25/36.50=.09

Again, this is wring. What am I missing?

3. In 2015, Jake's Jamming Music, Inc., announced an ROA of 8.54 percent, ROE of 14.30 percent, and profit margin of 13.3 percent. The firm had total assets of $9.3 million at year-end 2015.

Calculate the 2015 value of common stockholders' equity for Jake's Jamming Music, Inc?

Calculate the 2015 value of net sales for Jake's Jamming Music, Inc?

I was able to determine the Net income available to common stockholders by using PM=NET income/Sales. Therefore, 13.3%*20M=$794,220. This is correct.

Therefore, i used ROE=NET Income/common stockholders equity to get the common stockholders equity by taking 14.3%*794,220=$113,573.46. However, this is wrong? What am I doing wrong?

I am not sure how to determine net sales? What formula do I use?

4. Last year, Hassan's Madhatter, Inc., had an ROA of 8.2 percent, a profit margin of 18.45 percent, and sales of $20 million.

Calculate Hassan's Madhatter's total assets.

PM=Net Income/sales - 18.45%*20M=$3,690,000.00

ROA=Net Income/Total Assets - $3,690,000*8.2%=$302,580.00

This is not correct either - what am I doing wrong?

Thank you,

Lisa Bush