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Problem 4-22 Financial Ratios (LO3) Long-term debt ratio 0.3 Times interest earned 10.0 Current ratio 1.6 Quick ratio 1.0 Cash ratio 0.3 Inventory turnover 3.0
Problem 4-22 Financial Ratios (LO3)
Long-term debt ratio | 0.3 | ||
Times interest earned | 10.0 | ||
Current ratio | 1.6 | ||
Quick ratio | 1.0 | ||
Cash ratio | 0.3 | ||
Inventory turnover | 3.0 | ||
Average collection period | 73 | days | |
Use the above information from the tables to work out the following missing entries, and then calculate the companys return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)
Net sales 18.00 Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) 28.00 Interest expense Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $ 28 Accounts receivable 42 Inventories 34 Total current assets $ 104 Net property, plant, and equipment 33 $ 137 Total assets Liabilities and shareholders' equity Accounts payable Notes payable Total current liabilities $ 25.00 $ 20 35.00 40 $ 60 28 Long-term debt Shareholders' equity 49
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