NEED ANSWERED ASAP

ALL INFORMATIIN IS PROVIDED

NEED EVERYTHI ANSWERED IN THIS FORMAT

FIRST PIC IS PROBLEM

SECOND PIC IS DATA

= Part 4 Refer to Problem 14.8A (page 337Create - 673) Ratios: Consider Advisability. . . Debt Compute "a.1" through "a6." and show your work (calculations) Deduct 1 each wrong Decide if long-term borrowing is desirable from the stockholders' point of view and explain in box below. Deduct.5 for incorrect entry of work (calculations shown) Ans. B 1 Inventory turnover 9 2 Accounts receivable turnover Hint 3 Oper. expenses $2,750,000 31 below 32 4 Gross profits $2,750,000 83 $969,000 35% 84 5 Return on equity 17.8% 85 Hint 6 Return on assets $969.000 86 below 16% 87 b1 If you answer yes to the question, "Is borrowing desirable from 88 the stockholders' view?", enter "Y" if not enter "N" 89 b2 Explain why in the box below: Deduct 0.5 to 2 for poor explanation 90 91 92 93 Hint. The difference between Net Income and Operating Income are non-operating items and taxes. The difference between Operating 94 Income and Gross Profit IS Operating Expenses. Finally, Gross Profit is the difference between Sales and Cost of Goods Sold 95 Look at the income Statement on Page 301 as an illustration 96 97 Hint Return on Assets is frequently calculated as return on assets from Operating Income. See hint for item 3 above to calculate 98 99 100 e. LUIS wo the nearest I percent.) As an equity investor do you think that. Medtone's management is utilizing the company's resources in casonably efficient manner? Explain. At the end of the year, the following information was obtained from the accounting records of Harrison Electronics, Inc. LO14-5, LOI4-7 PROBLEM 14.8A Ratios; Consider Advisability of Incurring Long-Term Debt Sales (all on credit) Cost of goods sold Average inventory Average accounts receivable Interest expense Income tax expense ... Net income Average investment in assets Average stockholders' equity $2,750,000 1,781,000 375,000 282,000 45,000 84,000 159,000 1,800,000 895,000 4 Part 4 Instructions a. From the information given, compute the following: 1. Inventory turnover. 2. Accounts receivable turnover. 3. Total operating expenses. 4. Gross profit percentage. 5. Return on average stockholders' equity. 6. Return on average assets