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PLEASE SHOW WORK. will rate any answers 3. (6 points) Suppose that for 2019, Newberry, Inc., had a net income of $39,500,000, and Earnings Before
PLEASE SHOW WORK. will rate any answers
3. (6 points) Suppose that for 2019, Newberry, Inc., had a net income of $39,500,000, and Earnings Before Interest and Taxes (EBIT) of $85,000,000. If the firm paid a 21% tax rate, what was Newberry, Inc.'s interest expense for 2019? 4. (6 points) Lehrke, Inc. has a profit margin of 12% and an equity multiplier of 1.5. Its sales are $600 million, and it has total assets of $800 million. What is its ROE? Please show your calculations (intermediate steps and final answer) to the nearest one-hundredth of one percent (0.01%, or 0.0001). 5. (6 points) Eason, Inc. has $450,000 in current assets, and $150,000 in current liabilities. The firm would like to acquire some additional inventory in advance of the Christmas shopping rush. However, to purchase this additional inventory, the firm will need to raise funds through short-term loans (notes payable). Further, the firm wishes to maintain a current ratio of at least 2.5. What is the maximum amount of additional inventory that the firm can acquire under these circumstances? 6. (6 points) Finch, Inc. had $150,000 in cash at the end of 2018, and $250,000 in cash at the end of 2019. For 2019, the company's operating cash flows were $90,000, and its investment cash flows were ($30,000), where the parentheses denote a negative number. What was the amount of Finch, Inc.'s financing cash flows for the year? 7Step by Step Solution
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