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Waxham's Feed Mill 2006 and 2007 Balance Sheets 2006 2007 Cash Accounts rec. 2006 2007 S 1,642 $ 987 $ 2,062 S 2,607 6,840 6,400

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Waxham's Feed Mill 2006 and 2007 Balance Sheets 2006 2007 Cash Accounts rec. 2006 2007 S 1,642 $ 987 $ 2,062 S 2,607 6,840 6,400 Accounts payable 1,203 1,318 Long-term debt -4.047-2282 Common stock 7,500 7,500 Inventory Total Net fixed assets 6,892 S 7,594 Retained earning 2009 2.397 IS12 1.310 S18.411 $18.904 Total liabe equity 18.411 S18904 Total assets Use the above Income Statement and Balance Sheet to answer q uestions 16 thru 19 16. How many days on average does it take Waxham's Feed Mill to sell its inventory? (Use 2007 values) a. 72.18 b. 87.77 c. 90.18 d. 111.02 e. 114.71 17. How many dollars of sales are being generated from every dollar of fixed assets? (Use 2007 values.) a. $1.49 b. $1.53 c. $1.86 d. $1.89 e. $1.99 18 What is the equity multiplier for 2007? a. 1.67 b. 1.72 c. 1.91 d. 1.94 e. 2.03 19. What is the return on equity for 2007? (Use 2007 values,) a. 15.29 percent b. 16.46 percent c. 17.38 percent d. 18.04 percent e. 18.12 percent Waxham's Feed Mill 2006 and 2007 Balance Sheets 2006 2007 Cash Accounts rec. 2006 2007 S 1,642 $ 987 $ 2,062 S 2,607 6,840 6,400 Accounts payable 1,203 1,318 Long-term debt -4.047-2282 Common stock 7,500 7,500 Inventory Total Net fixed assets 6,892 S 7,594 Retained earning 2009 2.397 IS12 1.310 S18.411 $18.904 Total liabe equity 18.411 S18904 Total assets Use the above Income Statement and Balance Sheet to answer q uestions 16 thru 19 16. How many days on average does it take Waxham's Feed Mill to sell its inventory? (Use 2007 values) a. 72.18 b. 87.77 c. 90.18 d. 111.02 e. 114.71 17. How many dollars of sales are being generated from every dollar of fixed assets? (Use 2007 values.) a. $1.49 b. $1.53 c. $1.86 d. $1.89 e. $1.99 18 What is the equity multiplier for 2007? a. 1.67 b. 1.72 c. 1.91 d. 1.94 e. 2.03 19. What is the return on equity for 2007? (Use 2007 values,) a. 15.29 percent b. 16.46 percent c. 17.38 percent d. 18.04 percent e. 18.12 percent

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