question 6 , question 12
LO 2 LO 2 LO 2 LO 3 LO 3 receivables? How long did it take, on average, for credit customers to pay off their accounts during the past year? 4. Calculating Inventory Turnover ATX Corporation has ending inventory of $625,817, and cost of goods sold for the year just ended was $9,758,345. What is the inventory turnover? The days' sales in inventory? How long on average, did a unit of inventory sit on the shelf before it was sold? 5. Calculating Leverage Ratios Bello, Inc., has a total debt ratio of .43. What is its debt-equity ratio? What is its equity multiplier? 6. Calculating Market Value Ratios Dove, Inc., had additions to retained earnings for the year just ended of $486,000. The firm paid out $175,000 in cash dividends, and it has ending total equity of $6.825 million. If the company currently has 335,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? If the stock currently sells for $46 per share, what is the market-to-book ratio? The price-earnings ratio? If total sales were $15.4 million, what is the price-sales ratio? 7. DuPont Identity IfjPhone, Inc., has an equity multiplier of 1.67, total asset turnover of 1.45, and a profit margin of 5.9 percent, what is its ROE? 8. DuPont Identity Croc Gator Removal has a profit margin of 6.4 percent, total asset turnover of 1.73, and ROE of 14.3 percent. What is this firm's debt-equity ratio? 9. Calculating Average Payables Period For the past year, Hawkeye, Inc., had a cost of goods sold of $95,318. At the end of the year, the accounts payable balance was $22,816. How long, on average, did it take the company to pay off its suppliers during the year? What might a large value for this ratio imply? 10. Equity Multiplier and Return on Equity Pickler Company has a debt-equity ratio of.65. Return on assets is 7.2 percent, and total equity is $815,000. What is the equity multiplier? Return on equity? Net income? 11. Internal Growth If Levine, Inc., has an ROA of 7.8 percent and a payout ratio of 25 percent, what is its internal growth rate? 12. Sustainable Growth If the Crash Davis Driving School has an ROE of 14.6 percent and a payout ratio of 20 percent, what is its sustainable growth rate? 13. Sustainable Growth Based on the following information, calculate the sustainable growth rate for Northern Lights Co.: Profit margin = 6.7% Capital intensity ratio = .45 Debt-equity ratio = 35 Net income = $135.000 Dividends = $65,000 LO 2 LO 2 LO 3 LO 3 LO3
