Here are comparative balance sheets and an income statement:

Requirements:

Compute the following figures

a$.$ Accounts Receivable Turnover

b$.$ Days in Accounts Receivable

c$.$ Inventory Turnover

d$.$ Days in Inventory

e$.$ Purchases

f$.$ Accounts Payable Tumover

g$.$ Days in Accounts Payable

h$.$ Operating Cycle

i$.$ Cash conversion days

j$.$ Earnings Before Interest and Taxes $($NORAT$)$

k$.$ Return on Assets

Profit Margin

m$.$ Asset Turnover

n$.$ Return on Common Equity

Consider the valuation model of Equation $7\mathrm{.}6($Chapter $7,$ page $7-8,$ or page $276$ hardcopy$).$ Use a discount rate of $5$ percent.

a$.$ What are the Normal Earnings for $2023.$

b$.$ What are the Abnormal Earnings for $2023.$

c$.$ An analyst reports to you a forecast of $$80$ as a likely permanent annuity of abnormal earnings beginning with $2024.$ At the discount rate of $5$ percent, what is the Present Value of Abnormal Earnings as of December $31,2023.$

d$.$ What is the value of the company as of January $1,2024,$ using the valuation model of Equation $7\mathrm{.}6($Chapter $7,$ page $7-8,$ or page $276$ hardcopy$),$ and your computation in c$?$