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Principles of finance 1 Please in a good text Interest expense A. Use the following information for questions Cash $ 90,000 Inventory 1110,000 Sales (all
Principles of finance 1 Please in a good text
Interest expense A. Use the following information for questions Cash $ 90,000 Inventory 1110,000 Sales (all on credit) $ 12,000,000 Net plant and equipment 2400,000 Marketable securities 150,000 Selling and administrative expense* 1350,000 150,000 Liabilities and Stockholders' Equity Accounts payable $ 150,000 Notes payable 750,000 Retained earnings 1800,000 Cost of goods sold 9,000,000 Accounts receivable 1050,000 Long-term liabilities 900,000 Taxes 300,000 Extraordinary loss 600,000 Common stock 1200,000 B- Rama company is financing a new truck with a loan now of $30,000, to be repaid in 5 annual end-of-year installments of $7513.68. What annual interest rate is the company paying? (5 MARKs) C- Ahmed would like to purchase a home in five (10) years. The individual will accumulate enough money for a $40,000 down payment by making equal monthly payments to an account that is expected to earn 12% annual interest compounded monthly. How much are the equal monthly payments? (5 MARKS) From the information above please: 1- Prepare the Balance sheet (7.5 MARKES) 2- Prepare the Income statement) (7.5 MARKES) 3-Calculate the following ratios and what these ratios masseurs? (13 MARKS) Selling and administrative expense*Includes $150,000 in lease payments A, Profitability ratios C. Liquidity ratios.: 9. Current ratio: evaluate 1. Profit margin: 2. Return on assets investment) 3. Return on equity: B. Asset utilization ratios: 10. Quick ratio D. Debt utilization ratios 4. Receivable turnover: 11. Debt to total assets: 12. Times interest earned 5. Average collection perioda 6. Inventory turnover: 13. Fixed charge coverage 7. Fixed asset turnover: 8. Total asset turnoverStep by Step Solution
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