Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all four parts. If you do not wish to answer all four parts then let someone else who enjoys solving finance do so.

Please answer all four parts. If you do not wish to answer all four parts then let someone else who enjoys solving finance do so.

image text in transcribedimage text in transcribed

A company's assets consist of $254,478 of cash, $579,445 of accounts receivable, $487,009 of inventory, and $2,478,554 of plant and equipment. Its liabilities consist of $332,887 of accounts payable, $139,877 of accruals, and $1,275,000 of long- term debt. The company's annual sales are $4,765,889, it paid $165,750 of interest, its earnings before taxes are $453,816, and its net income is $272,289. In its industry, the average profit margin is 6.83%, the average total asset turnover is 1.25, and the average equity multiplier is 1.85. Using DuPont analysis, determine if the company's return on equity is above or below the industry average and what factor causes the difference? A) Below, profit margin B) Above, profit margin C) Below, total asset turnover D) Above, total asset turnover E) Below, equity multiplier What does the basic earnings power ratio measure? A) Liquidity B) Asset utilization C) Profitability D) Capital structure A company's assets consist of $15,775 of cash, $45,865 of accounts receivable, $87,234 of inventory, and $89,556 of plant and equipment. Its liabilities consist of $23,667 of accounts payable, $12,667 of accruals, and $66,191 of long-term debt. The company's annual sales are $357,445, it paid $8,605 of interest, its earnings before taxes are $37,863, and its net income is $24,611. What is the company's quick ratio? A) 1.7 B) 1.5 C) 3.1 D) 2.1 E) 3.4 A company's assets consist of $123,456 of cash, $237,543 of accounts receivable, $348,876 of inventory, and $1,456,987 of plant and equipment. Its liabilities consist of $187,694 of accounts payable, $56,895 of accruals, and $622,156 of long-term debt. The company's annual sales are $3,678,775, its earnings before interest and taxes are $551,816, its earnings before taxes are $489,601, and its net income is $293,760. What is the company's debt ratio? A) 40.0% B) 31.5% C) 60.0% D) 22.3% E) 29.6%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Unlocking Private Company Wealth

Authors: Z. Christopher Mercer, Jim Clifton

1st Edition

097006988X, 978-0970069887

More Books

Students also viewed these Finance questions

Question

What primary and secondary conflicts would your team experience?

Answered: 1 week ago