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17. Find inventory turnover. A. 28.57 B. 14.63 C. 12.90 D. 6.45 E. None of the above. 18. Find net profit margin. A. 5% B. 6% 70%

17. Find inventory turnover. A. 28.57 B. 14.63 C. 12.90 D. 6.45 E. None of the above. 18. Find net profit margin. A. 5% B. 6% 70%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Using the following information for question 17 to 19. Year Assets Cash and cash equivalents Receivables Inventories Total current assets PP&E, net Total assets Total current liabilities Long-term debt Income Statement ($ in millions) Year Sales COGS Gross profit Operating expenses Operating profit Interest expense Earnings before taxes Taxes Net income 17. Find inventory turnover. A. 28.57 B. 14.63 C. 12.90 D. 6.45 E. None of the above. 18. Find net profit margin. A. 5% B. 6% C. 7% D. 8% E. None of the above. 7 2022 105 205 310 620 1,440 2,060 325 610 2022 4,000 3,000 1,000 650 350 50 300 100 200
Transcribed Image Text:Using the following information for question 17 to 19. Year Assets Cash and cash equivalents Receivables Inventories Total current assets PP&E, net Total assets Total current liabilities Long-term debt Income Statement ($ in millions) Year Sales COGS Gross profit Operating expenses Operating profit Interest expense Earnings before taxes Taxes Net income 17. Find inventory turnover. A. 28.57 B. 14.63 C. 12.90 D. 6.45 E. None of the above. 18. Find net profit margin. A. 5% B. 6% C. 7% D. 8% E. None of the above. 7 2022 105 205 310 620 1,440 2,060 325 610 2022 4,000 3,000 1,000 650 350 50 300 100 200
19. Find asset turnover. A. 2.0 B. 2.2 C. 2.4 D. 2.6 E. None of the above 20. Net income is a measure of cash. 21. Because the common-size format standardizes the financial statements by eliminating the effects of size and assets is a measure of size, common-size income statement expresses each item as a percentage of total assets. A. True B. False A. True B. False 22. Net working capital of firm A is $10 million, higher than $9 million of firm B, therefore you can decide that firm A has higher ability to meet short-term obligations. A. True B. False 23. It is always good to have large accounts receivable turnovers. A. True B. False A. True B. False 24. Baruch Inc. understates year-end depreciation. As compared to the properly stated year-end results, this understatement will have no impact on the company's EBITDA. A. True B. False 25. Baruch Inc. understates earnings. As compared to the properly stated results, this understatement will have no impact on the company's asset turnover.
Transcribed Image Text:19. Find asset turnover. A. 2.0 B. 2.2 C. 2.4 D. 2.6 E. None of the above 20. Net income is a measure of cash. 21. Because the common-size format standardizes the financial statements by eliminating the effects of size and assets is a measure of size, common-size income statement expresses each item as a percentage of total assets. A. True B. False A. True B. False 22. Net working capital of firm A is $10 million, higher than $9 million of firm B, therefore you can decide that firm A has higher ability to meet short-term obligations. A. True B. False 23. It is always good to have large accounts receivable turnovers. A. True B. False A. True B. False 24. Baruch Inc. understates year-end depreciation. As compared to the properly stated year-end results, this understatement will have no impact on the company's EBITDA. A. True B. False 25. Baruch Inc. understates earnings. As compared to the properly stated results, this understatement will have no impact on the company's asset turnover.
Expert Solution
Step 1: Formula.

According to bartleby guidelines , if multiple questions are asked , then 1st question needs to be answered.

We have solved question 17 to 19 because they belong to same case study.


1.Inventory turnover  = fraction numerator S a l e s over denominator I n v e n t o r y end fraction

2.Net profit margin = fraction numerator N e t space I n c o m e over denominator S a l e s end fraction space asterisk times space 100

3.Asset Turnover = fraction numerator S a l e s space over denominator T o t a l space a s s e t s end fraction

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