Question
The following data apply to Jacobus and Associates (millions of dollars): Cash$400 Fixed Income$4,300 Sales$14,600 Net Income$730 Quick Ratio2.0 Current Ratio3.0 DSO40 days ROE12.5% Jacobus
The following data apply to Jacobus and Associates (millions of dollars):
Cash$400
Fixed Income$4,300
Sales$14,600
Net Income$730
Quick Ratio2.0
Current Ratio3.0
DSO40 days
ROE12.5%
Jacobus has no preffered stock-only common equity, current liabilities, and long-term debt. Find Jacobus's
(1) Accounts receivable,
(2) current liabilities,
(3) current assets,
(4) total assets,
(5) ROA,
(6) common equity,
(7) long-term debt,
(8) equity multiplier,
(9) profit margin, and
(10) total asset turnover.
Substitute your calculated profit margin, total asset turnover, and equity multiplier into the DuPont equation and verify that resulting ROE is 12.5%
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