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Must provide excel fomulas as well in 'Ch0'. Excel should contain all your inputs, formulas, and results, while your Word document should contain responses to
Must provide excel fomulas as well
in 'Ch0'. Excel should contain all your inputs, formulas, and results, while your Word document should contain responses to the prompts, explaining the numbers from Excel. Your finished document should be between 2-3 pages long. 1. Here are simplified financial statements for Mowtek's Corporation in a recent year: Calculate the following financial ratios for the company: (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Explain in one sentence what each number means to the company. a) Return on equity (use average balance sheet figures) b) Return on assets (use average balance sheet figures) c) Return on capital (use average balance sheet figures) d) Days in inventory (use start-of-year balance sheet figures) e) Inventory tumover (use start-of-year balance sheet figures) f) Average collection period (use start-of-year balance sheet figures) g) Operating profit margin h) Long-term debt ratio (use end-of-year balance sheet figures) i) Total debt ratio (use end-of-year balance sheet figures) j) Times interest earned k) Cash coverage ratio 1) Current ratio (use end-of-year balance sheet figures) m) Quick ratio (use end-of-year balance sheet figures) 2. Here is a simplified balance sheet breakdown and other financial information for Leslie's SRU Facemasks. Current Liabilities $60 Current assets $100 Long-term assets $500 Long-term debt $280 a) If Leslie uses $65 to purchase more inventory, how will this impact the current ratio? The Quick ratio? b) Leslie collects most payments via Paypal but does not transfer the money to the bank until the end of every month. Explain how interest compounding works to Leslie and give a solution to this payment system. Leslie also does business in cash and never deposits that moncy. How does inflation play a role in Leslie's cash flow system? 3. After listening to your advice Leslie brought you a friend, Kairo, who wants to purchase a small house to use as a combination storefront/warehouse and home. Kairo found a house off Main Street for $250,000 with a 20-year mortgage at 3.8%. Kairo was able to score a great deal where the payments are only due annually and will make those at the end of each year Step by Step Solution
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