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Use the above information from the tables to work out the following missing entries, and then calculate the companys return on equity. Note: Turnover and
Use the above information from the tables to work out the following missing entries, and then calculate the companys return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)
Long-term debt ratio Times interest earned Current ratio Quick ratio Cash ratio Inventory turnover Average collection period 0.2 8.0 1.2 1.0 0.2 3.0 73 days 22.00 INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Tax (35% of income before tax) 32.00 Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $ 32 Accounts receivable 46 Inventories 38 $ 116 37 $ 153 $ 30.00 $ 25 Total current assets Net property, plant, and equipment Total assets Liabilities and shareholders' equity Accounts payable Notes payable Total current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity 35.00 40 $ 65 20 68 $ 230.00 $ 153Step by Step Solution
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