Question
please help with the following questions: 1.) The following information is available about Marne Company for 2010. All sales are on credit. Average cash and
please help with the following questions:
1.) The following information is available about Marne Company for 2010. All sales are on credit.
Average cash and marketable securities = $1 million | EBIT = $2 million |
Average inventory = $5 million | COGS = $15 million |
Average accounts payable = $3 million | Long-term bonds = $8 million |
Average accounts receivable = $3 million | Coupon rate on bonds = 10% |
| Total Sales = $20 million |
Find its
(A) Inventory turnover ratio
(B) Number of days sales outstanding
(C) Interest coverage ratio
(D) Current ratio
(E) Quick ratio
2.) Go to the Internet and find the following ratios for McDonald Corporation (MCD). Give the source of your information.
Ratio | Formula | Calculation | Ratio |
Liquidity |
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Current | total current assets / total current liabilities |
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Quick, or Acid Test | (current assets - inventories) / current liabilities |
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Asset Management |
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Inventory Turnover | cost of goods sold / Inventories (average) |
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Days sales outstanding | Receivables / Sales per day |
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Fixed assets turnover | Annual sales / Net Fixed assets (average) |
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Total assets turnover | Annual sales / total assets (average) |
|
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Debt Management |
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Debt ratio | total debt / total assets |
|
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Interest coverage | EBIT / Interest charges |
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Profitability |
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Net profit margin | net income / total operating revenue |
|
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Net return on assets | net income / total average assets |
|
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Return on common equity | net income to stockholders / average common equity |
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Dividend payout ratio | total cash dividends / net income |
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Market Value |
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P-E ratio | (Market Price/share) / (Earnings/share) |
|
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Market/Book | (Market Price/Share) / (Book Value/Share) |
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Dividend yield | Dividend per share / Market Price per share |
|
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