Question: You are doing some financial analysis research for your work and managed to get (incomplete) data. You will use this data to deduce the required

You are doing some financial analysis research for your work and managed to get (incomplete) data. You will use this data to deduce the required information. You can assume 365 days in a year.

(a) Alpha Co. reported a cost of goods sold of $64,380.00 and an accounts payable balance of $16,700.00 last year. Compute the average time taken to pay suppliers. Discuss the significance of a long days' costs in payables for the firm.

(b) Bravo Ltd. equity multiplier is 1.93, its total asset turnover is 2.65, and its profit margin is 4.20 percent. Compute the Return on Equity (ROE). Explain the impact on ROE, should the total asset turnover decline next year.

(c) Charlie Inc. has a profit margin of 7.90 percent, a total asset turnover of 1.54, and a Return on Equity (ROE) of 13.47 percent. Solve for the debt-equity ratio.

(d) Delta GMBH's ROE is 8.9 percent. Sales are $2,956,000.00. Total debt ratio is 0.3743. Total debt is $964,000.00. Determine the return on assets (ROA).

Step by Step Solution

★★★★★

3.47 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

SOLUTION a The average time taken to pay suppliers is calculated as accounts payable balance divided ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Most supermarkets across the United States have invested heavily in optical scanner systems to expedite customer checkout, increase checkout productivity, and improve product accountability. These...

List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...

Your firm designs PowerPoint slides for computer training classes, and you have just received a request to bid on a contract to produce the slides for an 8-session class. From previous experience,...

Using the data in the following table for a number of firms in the same industry, do the following: a. Compute the total asset turnover, the net profit margin, the equity multiplier, and the return...

You are a passenger on a spacecraft. For your survival and comfort, the interior contains air just like that at the surface of the Earth. The craft is coasting through a very empty region of space....

If Windemere Legal has an equity multiplier of 1.60, total asset turnover of 1.32, and a profit margin of 8 percent, what is its ROE?

Westerly Industries has the following financial information. What is its cash conversion cycle ? Sales ........100,000 Cost of Goods Sold 80,000 Accounts Receivable ..30,000 Inventory ......15,000...

For each of the following items, calculate the cash sources or cash uses that should be recognized on the statement of cash flows for Baldin Co. for the year ended December 31, 2010: a. Sales on...

Rockwell RV Centers accounting records include the following accounts at December 31, 2012: Requirement 1. Journalize the required closing entries for Rockwell RV Center for December 31,2012. Cost of...

Explain the usage of preference share capital in capital structure increases financial leverage.

Steam is throttled from 10 MPa, 400oC to 3 MPa. If the ambient temperature is 25oC, determine The change in temperature (T) and The irreversibility for a flow rate of 1 kg/s. Use the real gas model.

Evaluate 0 d ( a + b c o s ) 2 for 0

how to write a promotional letter that introduces and promotes a product or service to a company that may be interested in the benefits of your product or service. what are the key ideas or terms to...

The numbers of hours worked (per week) by 400 statistics students are shown below. Number of hours Frequency 0 - 9 20 10 - 1980 20 - 29 200 30 - 39 100 1. The relative frequency of students working 9...

If sales are $525,000, variable costs are 64% of sales, and operating income is $50,000, what is the contribution margin ratio?

1. For items a-g give an example of a cost to make a shirt. For items h-j name the three types of inventory. (10 Points) Type of Cost Item Direct Material Direct Labor Factory Overhead Administrative...

Redtop Co. uses a standard cost system and flexible budgets. The following flexible budget was prepared at the 80% operating level for the year: Standard direct labor hours (DLHs) 28,800 Budgeted...

One of the goals of Valley base marketing is to provide the greatest value of 40 least profit to offer greater value than competitors offer to sell all consumers, regardless of their needs to sell...

Review the Comprehensive annual financial report (CAFR) you obtained. 4. Were any of the government's enterprise funds "profitable" during the year? If so for what has the government done with the...

1.Were any of the governments enterprise funds profitable during the year? If so, what has the government done with the earnings? Has it transferred them to the general fund? 2.Does the government...

For Question 1 read the questions then answer them first using IASB Concepctual Framework 2010 then answer them a second time using FASB?s Conceptual Framework statement. (QUESTION 1 HAS TO BE...

The Canadian Bankers Association is pleased to provide this submission in response to Finance Canada's January 2019 consultation paper (the Consultation Paper) on the merits of open banking in...

Im having trouble with question 3 part A of the attached file. I know and understand her needs but im not sure if im filling out the table correctly ? Assignment Tier 1 Financial Planning...

Not-for-Profit Organizations: Sources of Funding and Primary Expenditures Write a paper of no more than 1,050 words that answers the following questions for each site: Columbia, Missouri - CAFR is...