Question
The following are the financial statements for Qwerty Inc: Qwerty Inc 2017 Income Statement ($ in millions) Net sales $9,610 Less: cost of goods sold
The following are the financial statements for Qwerty Inc: Qwerty Inc 2017 Income Statement ($ in millions) Net sales $9,610 Less: cost of goods sold 6,310 Less: Depreciation 1,370 Earnings before interest and taxes 1,930 Less: Interest paid 630 Taxable Income $1,300 Less: Taxes 455 Net income $845 Qwerty Inc Statement of Financial Position ($ in millions) 2016 2017 2016 2017 Cash $310 $405 Accounts payable $2,720 $2,570 Accounts rec. 2,640 3,055 Notes payable 100 0 Inventory 3,275 3,850 Total $2,820 $2,570 Total $6,225 $7,310 Long-term debt 7,875 8,100 Net fixed assets 10,960 10,670 Common stock 5,000 5,250 Retained earnings 1,490 2,060 Total assets $17,185 $17,980 Total liab. & equity $17,185 $17,980 Calculate the following for 2017: a) Operating cash flow. b) Change in net working capital. c) Current ratio. d) Quick ratio. e) Total asset turnover ratio. f) Receivables turnover ratio. g) Inventory turnover ratio. h) Debt ratio i) Debt-to-equity ratio j) Profit margin k) Return on Assets l) Return on Equity
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