Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz!! Profitability Ratios A firm has net income of $123,000 on sales of $2.4 million. Total assets are $2.46 million and total equity is $1.5

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

plz!!

Profitability Ratios A firm has net income of $123,000 on sales of $2.4 million. Total assets are $2.46 million and total equity is $1.5 million What is the profit margin? What is the return on equity? What is the return on assets? 11 A firm has net income of $368,400, total assets of $23.946 million, and an equity multiplier of 1.6. What is the return on equity? 14 Liquidity Ratios Use this information to calculate the ratios below. Cash Accounts receivable Inventory Accounts payable Average daily operating costs Total assets $ 900 1,200 2,100 1,600 70 8,600 Current ratio, Cash ratio, Quick ratio, Interval measure, and Net working capital to total assets 2 Long-Term Solvency Ratios A firm has a long-term debt of $63,000. The long-term debt ratio is 0.40 and the equity multiplier is 1.8. What is the amount of total assets? Hint: By using the equity multiplier, we can determine the amount of total assets. But, we will need to know the amount of total equity. Total equity can be found by using the long-term debt ratio. Asset Utilization Ratios A firm has current liabilities of $21,800 total assets of $82,900, and sales of $149,200. The net working capital is $4,600. What is the net working capital turnover rate? What is the total asset turnover rate (up to two decimal places)? 9

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

Personal Finance

Authors: Jack Kapoor

6th Edition

0072350849, 9780072350845

More Books

Students also viewed these Finance questions