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Return on Equity ( ROE ) 1 . If a firms total equity is $ 2 , 0 0 0 , 0 0 0 at

Return on Equity (ROE)
1. If a firms total equity is $2,000,000 at the start of the year and $2,500,000 at the end, and it earned a net income of $450,000, what is the ROE?
2. Calculate the ROE for a company that has a net income of $600,000 and shareholder's equity consistently at $3,000,000 throughout the year.
Return on Assets (ROA)
3. Determine the ROA for a company with a net income of $250,000 and total assets of $1,250,000 at year-end.
4. A business earns a net income of $100,000, with total assets beginning at $500,000 and an additional $200,000 acquired during the year.
Calculate the ROA.Days in Inventory
5. If a company's inventory turnover ratio is 10 times a year, calculate t he days in inventory.
6. Calculate the days in inventory given an inventory turnover of 7 times annually.
Inventory Turnover
7. If a company reports COGS of $900,000 and had an average inventory
of $150,000, find the inventory turnover ratio.
8. Calculate the inventory turnover for a business with COGS of $600,000 and ending inventory of $75,000, assuming starting inventory was $125,000.
Accounts Receivable Turnover
9. A company with net credit sales of $500,000 and average accounts receivable of $50,000 has what accounts receivable turnover?
10. Calculate the accounts receivable turnover if a company has $800,000 in credit sales and $160,000 in average accounts receivable.
Average Collection Period
11. What is the average collection period for an accounts receivable turnover of 15 times?
12. Determine the average collection period when the accounts receivable turnover is 4 times.
Price to Earnings Ratio (P/E)
13. Calculate the P/E ratio for a company whose stock price is $30 and earnings per share are $1.50.
14. If a company's earnings per share is $5 and its stock price is $75, what is the P/E ratio?
Mixed Question
15. A company has a net income of $200,000, total assets of $2,000,000, total equity of $1,000,000, an inventory turnover of 8, and average receivables of $250,000. Calculate both ROA and ROE

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