Question
Please answer both questions and show all work neatly. Thank you! 1. Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio
Please answer both questions and show all work neatly. Thank you!
1. Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.3. Current liabilities are $700, sales are $4,440, the profit margin is 9.5 percent, and the return on equity is 19.5 percent. How much does the firm have in net fixed assets?
2. Suppose Jim wants to be able to withdraw $10,000 at the end of five years and withdraw $12,000 at the end of six years, leaving a zero balance in the account after the last withdrawal. If Jim can earn 5% on his balances, how much does he need to deposit today to satisfy his withdrawals needs?
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