Question
Our company holds $200,000 in accounts payable and $100,000 in accounts receivable. Additionally, the firm has $200,000 in inventories and $600,000 in land and equipment,
Our company holds
$200,000
in accounts payable and
$100,000
in accounts receivable. Additionally, the firm has
$200,000
in inventories and
$600,000
in land and equipment, a long-term bank loan of
$100,000
and has issued a long-term bond for
$300,000
. Finally, the company has net income
150,000$
and 30,000 shares outstanding that currently sell for
25$
each.\ Carefully create the Balance Sheet of the firm.\ Estimate the current and therquick ratio.\ What is the net working capital of the firm?\ Estimate the total debt ratio, the debt-to-equity ratio, and the equity multiplier.\ Estimate the price-earnings ratio and the market-to-book ratio.
Our company holds $200,000 in accounts payable and $100,000 in accounts receivable. Additionally, the firm has $200,000 in inventories and $600,000 in land and equipment, a long-term bank loan of $100,000 and has issued a long-term bond for $300,000. Finally, the company has net income 150,000$ and 30,000 shares outstanding that currently sell for 25$ each. 1. Carefully create the Balance Sheet of the firm. 2. Estimate the current and therquick ratio. 3. What is the net working capital of the firm? 4. Estimate the total debt ratio, the debt-to-equity ratio, and the equity multiplier. 5. Estimate the price-earnings ratio and the market-to-book ratio
Our company holds
$200,000
in accounts payable and
$100,000
in accounts receivable. Additionally, the firm has
$200,000
in inventories and
$600,000
in land and equipment, a long-term bank loan of
$100,000
and has issued a long-term bond for
$300,000
. Finally, the company has net income
150,000$
and 30,000 shares outstanding that currently sell for
25$
each.\ Carefully create the Balance Sheet of the firm.\ Estimate the current and therquick ratio.\ What is the net working capital of the firm?\ Estimate the total debt ratio, the debt-to-equity ratio, and the equity multiplier.\ Estimate the price-earnings ratio and the market-to-book ratio.
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