Solve these general accounting question not use ai Adele Corp's sales last year were $315,000, and its year-endtotal assets were $355,000. The average firm in the industryhas a total assets turnover ratio (TATO) of 2.4. The firm's newCFO believes the firms has excess assets that can be sold soas to bring the TATO down to the industry average withoutaffecting sales.By how much must the assets be reduced to bring the TATOto the industry average, holding sales constant?

Step 1: Define TATOTotal assets turnover ratio (TATO) is Sales / Average Assets.This ratio measures…

Answered: Adele Corp's sales last year were…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 2STP

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Lance Motors has current assets of $1.2 million. The company’s current ratio is 1.2, its quick ratio is 0.7, and its inventory turnover ratio is 4. The company would like to increase its inventory turnover ratio to the industry average, which is 5, without reducing its sales. Any reductions in inventory will be used to reduce the company’s current liabilities. What will be the company’s current ratio, assuming that it is successful in improving its inventory turnover ratio to 5?
Saddie & Co.'s return on assets (ROA) for the current year was 6.23%. Which of the following is true if Saddie & Co. wishes to increase their ROA? The company should decrease asset turnover. O The company should increase the selling price of its goods or services. The company should increase the cost of its products. The company should increase the amount of assets it has.
MAC Corp.'s sales last year were $435,000, its operating costs were $362,500, its operating income (EBIT) was $72,500 and its interest charges were $12,500. What was the firm's times interest earned (TIE) ratio? Please show work for understanding the calculation. Explain why the TIE ratio is important and what can the firm do to improve its TIE ratio.
Can you please answer this financial accounting question?
Calculate Zumwalt’s net profit margin and debt ratio. Earth’s Best Company has sales of $200,000, a net income of $15,000, and the following balance sheet: . The company’s new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.5, without affecting either sales or net income. If inventories are sold off and not replaced so as to reduce the current ratio to 2.5, if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? b. Now suppose we wanted to take this problem and modify it for use on an exam—that is, to create a new problem that you have not seen to test yourknowledge of this type of problem. How would your answer change if we made the following changes: (1) We doubled all of the dollar amounts? (2) We stated that the target current ratio was 3.0? (3) We said that the company had 10,000 shares of…
I won't answer? ?
JC Goods, Inc. has a total assets turnover of 0.30 and a profit margin of 10percent. The president is unhappy with the current return on assets, and he thinks it could be doubled. This could be accomplished (1) by increasing the profit margin to 15 percent and (2) by increasing the total assets turnover.What new asset turnover ratio, along with the 15 percent profit margin, isrequired to double the return on assets?a. 35%b. 45%c. 40%d. 50%
Fritwell has an asset turnover of 2.0 and an operating profit margin of 10%. It is launching a new product which is expected to generate additional sales of $1.6 million and additional profit of $120,000. It will require additional assets of $500,000. Assuming there are no other changes to current operations, how will the new product affect these ratios? Operating profit margin ROCE A Decrease Decrease B Decrease Increase C Increase Decrease D Increase Increase
If you give me wrong answer, I will give you unhelpful rate
Grant Communications is forecasting its financial statements for the upcoming year. Highlights include: Current assets of $6 million Current ratio of 2.0 Sales of $20 million Inventory turnover ratio (Sales/Inventory) of 6 The company's CFO is concerned about the forecasted inventory turnover ratio. Her goal is cut inventory enough to obtain an inventory turnover ratio of X, which is the industry average, while still maintaining sales at $20 million. If the company can accomplish this goal, the cash generated from the cut in inventories will be used to cut accounts payable. This will give the firm a Quick Ratio [(Current Assets - Inventory) / Current Liabilities] of 1.50. What is X, the desired inventory turnover ratio? Enter your answer, truncated to 2 decimal places. For example, enter 7.777 as 7.77.
For fiscal year 2021, Costco Wholesale Corporation ( COST) had a net profit margin of 2.60%, asset turnover of 3.24, and a book equity multiplier of 3.28. a. Use this data to compute Costco's ROE using the DuPont Identity. b. If Costco's managers wanted to increase its ROE by 1.10 percentage points, how much higher would their new asset turnover need to be? c. If Costco's net profit margin fell by 1.10 percentage points, by how much would their asset turnover need to increase to maintain their ROE? a. Use this data to compute Costco's ROE using the DuPont Identity. Costco's ROE is %. (Round to two decimal places.) If Costco's net profit margin fell by 1.05 percentage points, by how much would their asset turnover need to increase to maintain their ROE?
DTO, Inc., has sales of $18 million, total assets of $16.5 million, and total debt of $9.4 million. Assume the profit margin is 8 percent. a. What is the company's net income? (Do not round intermediate calculations. Enter your answer in dollars not in millions, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. C. % %

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