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The following data apply to Sinotronics (millions of dollars): Cash and Equivalents Fixed Assets Sales Net Income Current Liabilities $120.00 Sinotronics has no preferred stock
The following data apply to Sinotronics (millions of dollars): Cash and Equivalents Fixed Assets Sales Net Income Current Liabilities $120.00 Sinotronics has no preferred stock - only common equity, current liabilities, and long- 267.50 term debt. 1,100.00 a. Find Sinotronic's (1) accounts receivable, (2) current assets, (3) total 52.00 assets, (4) ROA, (5) common equity. (6) quick ratio, and () long-term debt. 106.80 b. In part a, you should have found that 3.1 x Sinotronics could reduce its DSO from 41.25 days to 30.4days while holding 41.25 days other things constant, how much cash would it generate? If this cash were 12.50% used to buy back common stock (at book value), thus reducing common equity, how would this affect (1) the ROE, (2) the ROA, and (3) the total debt/total asset ratio? Current Ratio DSO (based on 365-day year) ROE
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