ques 19, 3,8

Grow Me 0a3 repubcfi(962F6%2F104%5Bdata-Quid-88027167bd8e41a181838592190edd85%5D%2F4%2F2%5Bdata-vuid-Odd77930b1804614belaa 46258082%5D%2E4%5Bdata-vuid-fb05bded5349 Q A 6 : d. NWC to total assets ratio e. Debt-equity ratio and equity multiplier f. Total debt ratio and long-term debt ratio Intermediate (Questions 1931) Page 105 9. Using the DuPont Identity (L04) Ethelbert Inc. has sales of $5.276. total assets of $3,105, and a debt-equity ratio of 1.40. If its return on equity is 15%, what is its net income? I 20. Days' Sales in Receivables (LO3) Gunton Corp. has net income of $179.000, a profit margin of 8.30%, and an accounts receivable balance of $118.370. Assuming 70% of sales are on credit, what are the Gunton's day- sales in receivables? 21. Ratios and Fixed Assets (L03) The Fortier Company has a long term debt ratio of 0.35 and a current ratio of 1.30. Current liabilities are $910, sales are $6.430. profit margin is 9.5, and ROE is 18.5. What is the amount of the firm's net fixed assets? 22. Profit Margin (LO5) In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $2 to go buy $50 worth of groceries, then your child makes twice as much on the trip as we do." You've collected the following information from the grocery chain's financial statements: (millions) Sales $680 Net income $ 13.6 Total assets S410 Total debt $280 Evaluate the grocery chain's claim. What is the basis for the statement? Is this claim misleading? Why or why not? 23. Return on Equity (L03) Firm A and Firm B have total debt ratios of 45% and 39% and return on assets of 9% and 12%. respectively. Which lite fias a greater return on equity Net Income $ 7.600 Total $25,300 Tom $25.300 Steveston has predicted a sales increase of 15%. It has predicted that every item on the statement of financial position will increase by 15% as well. Create the pro forma statements and reconcile them. What is the plug variable here? 2. Pro Forma Statements and EFN (L02, 3) In the previous question, assume Steveston pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements and determine the external financing needed. 3. Calculating EIN (LO2) The most recent financial statements for Marpole Inc. are shown here (assuming no income taxes): Statement of Comprehensive Income Statement of Financial Position Sales $6.300 Assets $18.300 Debi $12.400 GOSTS 3.890 Equity 151200 Net income $210 Total $13.300 Total SIS:3:00 Assets and costs are proportional to sales Debt and equity are not. No dividends are paid. Next year's sales are projected to be $7.434. What is the external financing needed? 4. EINLO2) The most recent financial statements for Surcrest Inc. are shown here: Statement of Comprehensive Income Statutent of Financial Position Sales $26.400 ASTS $65,000 Debt S21400 Koses 17300 Equity 67.600 Tall TU 24 Participants Chat Share Screen Record Reactions tal $39.150 Toto Tuise (10%) $39. ISO SOB Net Income $ 2,262 Assets and costs are proportional to sales. Debt and equity are not. Burnaby maintains a constant 30% dividend payout ratio. No external equity financing is possible. What is the internal growth rate? 7. Calculating Sustainable Growth (L04) For the company in the previous problem, what is the sustainable growth rate? 8. Sales and Growth (LO2) The most recent financial statements for Cariboo Co. are shown here: Statement of Comprehensive Income Statement of Financial Position Sales $49,000 Current Assets $ 21,000 Long-term Debt $ 51.000 Costs 37.500 Fixed Assets 86.000 Equity 56,000 Taxable income $11.500 Total $107.000 Total $107.000 Taxes (34%) 3.910 Net income $ 7.590 Assets and costs are proportional to sales. The company maintains a constant 30% dividend payout ratio and a constant debt- equity ratio. What is the maximum increase in sales that can be sustained, assuming no new equity is issued? 9. Calculating Retained Earnings from Pro Forma Income (L03) Consider the following statement of comprehenste Page 140 income for the Dartmoor Corporation: DARTMOOR CORPORATION Statement of Comprehensive Income @ 24 1 Participants Chat Share Screen Record Reactions o i 18 18C