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Hey guys! Having a problem with this homework and starting to think that it is a system error. In regards to the ACP, yes I
Hey guys! Having a problem with this homework and starting to think that it is a system error.
In regards to the ACP, yes I did plug in simply 159 & 128, it still claims that it is incorrect.
Windswept Woodworks, Inc. Input Data (millions of dollars) Year 2 Year 1 472 1,316 6,782 260 1,220 1,500 414 860 6,662 158 1,150 n.a n.a n.a n.a 1,056 n.a 766 380 10,000 2,506 n.a 96 n.a $ 17.50 payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant& equipment Retained earnings Sales Other current liabilities Tax rate Market price per share - year end Number of shares outstandin 140 1,050 602 848 230 10,260 3,098 3,018 116 34% $ 19.80 500 million 500 million a. Interest coverage ratio (Assume that year 1 EBIT was 1,297 and year 1 interest expense was 120.) Year 2 interest coverage ratio Year 1 interest coverage ratio 10.84 10.81 b. Average collection period (Assume that the accounts receivable balance was 950 on December 31 of the previous year and that year 1 sales were 2,700.) Year 2 ACP Year 1 ACP 159.16 days 128.43 days c. Current ratio Year 2 current ratio Year 1 current ratio 3.21 2.32Step by Step Solution
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