1. Calculating Liquidity Ratios [LO2] SDJ, Inc., has net working capital of $2,170. current liabilities of $4,590, and inventory of $3,860. What is the current ratio? What is the quick ratio? Calculating Profitability Ratios [LO2] DTO, Inc., has sales of $16.7 million, BASI total assets of $12.9 million, and total debt of $5.7 million. If the profit margin is 5 (Quest percent, what is net income? What is ROA? What is ROE? 3. Calculating the Average Collection Period (LO2] Twist Corp, has a current ac- x counts receivable balance of $537,810. Credit sales for the year just ended were $5,473,640. What is the receivables turnover? The days' sales in receivables? How long did it take on average for credit customers to pay off their accounts during the past year? Calculating Inventory Turnover [LO2] The King Corporation has ending inven- tory of $386,735, and cost of goods sold for the year just ended was $4,981,315. What is the inventory turnover? The days' sales in inventory? How long on average did a unit of inventory sit on the shelf before it was sold? 5. Calculating Leverage Ratios [LO2] Queen, Inc., has a total debt ratio of .46. What is its debt-equity ratio? What is its equity multiplier? source or use of cash. Decrease in inventory Decrease in accounts payable Increase in notes payable Increase in accounts receivable $375 220 290 270 10. Calculating Average Payables Period [LO2] Heritage, Inc., had a cost of goods sold of $68,314. At the end of the year, the accounts payable balance was $15,486. How long on average did it take the company to pay off its suppliers during the year! What might a large value for this ratio imply? 11. Enterprise Value-EBITDA Multiple [LO2] The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, while the income statement has EBIT of $91,000 and a total of $157,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company? Equity Multiplier and Return on Equity [LO3] SME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. What is the equity multiplier? Return on equity? Net income? Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Use this information to work Problems 13 through 17. 12. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 12,157 $ 14.105 Accounts payable $ 46,382 $ 49,276 Accounts receivable 29,382 32,815 Notes payable 18.246 19,784
