Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me finish this, i have to submit it by today! thank you Submitting a text entry box, a website url, a media recording,

please help me finish this, i have to submit it by today! thank you
image text in transcribed
image text in transcribed
Submitting a text entry box, a website url, a media recording, or a file upload Assume you are given the attached abbreviated financial statement. (on the page 292 of the textbook) On the basis of this information, calculate the following liquidity, activity, leverage, profitability, and common stock measures. (Note: Assume the current market price of the common stock is $75 per share.) Provide your worked solutions in EXCEL and interpret the results of ratio analysis one by one. 1. Liquidity 1) Current ratio = Current assets/Current liabilities 2) Net working capital = Current assets - Current liabilities 2. Activity 1) Total asset turnover = Sales (total revenue)/Total assets 3. Leverage 1) Debt-equity ratio = Long-term debt/Stockholders' equity 4. Profitability 1) Net profit margin = Net profits after taxes/Sales 2) Return on total assets = Net profits after taxes/Total assets 3) Return on equity = Net profits after taxes/Stockholders' equity 5. Common stock ratios 1) Book value per share = Common equity/Common shares outstanding 2) Price-to-book value In Share price/Book value per share Current assets $150 Fixed and other assets $200 Total assets Current liabilities $100 Long-term debt $50 Stockholders' equity $200 Total liabilities and equities $350 Common shares outstanding 10 million shares Total revenues $500 Total operating costs and expenses $435 Interest expense $10 Income taxes $20 Net profits $35 Dividends paid to common stockholders $10

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions