Question
Use the following financial statements to answer the Questions MCH Corp. Income Statement Sales $ 500 COGS 300 Gross Profit 200 Operating Expenses 100 Depreciation
Use the following financial statements to answer the Questions
| MCH Corp. Income Statement | |
| Sales | $ 500 |
| COGS | 300 |
| Gross Profit | 200 |
| Operating Expenses | 100 |
| Depreciation | 25 |
| EBIT | 125 |
| Interest Expense | 15 |
| EBT | 110 |
| Taxes | 25 |
| NI | 85 |
| Dividends | 0 |
| RE | $85 |
| MCH Corp. Balance Sheet | |
| Cash and Equivalents | $50 |
| Accounts Receivable | 100 |
| Inventory | 75 |
| Net Fixed Assets | 75 |
| Total Assets | $300 |
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| Accounts Payable | $35 |
| Short-Term Notes Payable | 5 |
| Accruals | 10 |
| Long-Term Debt | 150 |
| Total Liabilities | $200 |
| Total Shareholders Equity | $100 |
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| Liabilities and Shareholders Equity | $300 |
What is the current ratio?
| a. | 3.0 | |
| b. | 6.0 | |
| c. | 4.5 | |
| d. | 1.5 |
What is the quick ratio?
What is the net working capital?
| a. | $225 | |
| b. | $250 | |
| c. | $175 | |
| d. | $12 |
What is the days' inventory held?
| a. | 91.25 days | |
| b. | 121.67 days | |
| c. | 73 days | |
| d. | 42.58 days |
What is the days' sales outstanding?
| a. | 42.58 days | |
| b. | 91.25 days | |
| c. | 73 days | |
| d. | 121.67 days |
What is the days' payable outstanding?
| a. | 121.67 days | |
| b. | 91.25 days | |
| c. | 42.58 days | |
| d. | 73 days |
What is the operating cycle?
| a. | 42.58 days | |
| b. | 121.67 days | |
| c. | 91.25 days | |
| d. | 164.25 days |
What is the cash conversion cycle?
| a. | 121.67 days | |
| b. | 42.58 days | |
| c. | 164.25 days | |
| d. | 91.25 days |
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