Asset Turnover = 12What does that mean???a. For every $12 in total assets, you generated $1.00 in sales.b. You used up your inventory 12 times this period.c. For every $1.00 in total assets, you generated $12 in sales.d. For every $1.00 in average assets, you have $12 in total liabilities.

Asset Turnover is a financial metric that measures a company's ability to generate sales from its…

Answered: Asset Turnover = 12 What does that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the following information to complete the balance sheet below. Sales are $8.7 million, capital intensity ratio is 2.00 times, debt ratio is 65 percent, and fixed asset turnover ratio is 1.20 times. Note: Enter your answers in millions of dollars rounded to 2 decimal places. Current Assets = ? Fixed Assets = ? Total assets = ? Total liabilities = ? Total equity = ? Total liabilities and equity = ?
a) 15% increase in Current Liabilities. b) 33% increase in Owner's Capital. c) 19% increase in Long Term Liabilities d) All of the above 6. If current assets are P270,000 and total assets are P810,000, what percentage of total assets are current assets? c) 25 percent a) 3.5 percent 7. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. 8. A firm has liabilities of P30,000 and owner's capital of P90,000. The percentage of total liabilities to total assets is b) 30 percent d) 33 percent b) vertical analysis. d) ratio analysis. b) 20 percent. c) 50 percent. d) 75 percent. a) 25 percent. 9. A firm had owner's capital of P150,000 in 2013 and P187,500 in 2013. The increase in owner's capital from 2013 to 2014 is a) 12.5 percent. 10. If long-term liabilities are P300,000 and total assets are P2,100,000, what percentage of total assets are long-term liabilities? a) 7 percent b) 20…
am.101.
What is the Return on Equity? Total Asset Turnover = .245 Net Income = $400,000 Equity Multiplier = 1.20 Net Sales = $1,300,000
If you invested $2500 in an account 12 years ago, and it's worth $4,285 now, what rate of return did you earn on your investment? 14.283% 4.593% 4.760% 5.950% 3.471%
Net Credit Sales = 12,000. Accounts receivable turnover = 18.8 times. Cost of goods sold = 2,000. Days in Year = 365 days. How much is average collection period in days?
Net sales 2250 Equity 187.5 Total liabilities to equity 80% Turnover of fixed assets 20 times Current assets 3 times Quick ratio 2 times Collection period 18 days // Required to find cash / accounts receivable / inventory/ turnover of assets/ long-term liabilities 5:26 ✔
24. Following are a company's income statement at the end of the last year (year 0) and coming year (year 1). Each year, the company's accounts receivable need to be main- tained at 5% of sales. The company's inventory and accounts payable do not change. Capital expenditure in year 1 is $10,000. Year Sales Depreciation EBIT Taxes (a) What is the free cash flow in year 17 1 85,000 92,000 20,000 22,000 17,000 19,500 3,500 3,700 0 (b) The company's business is mature, so it is expected to generate the same amount of free cash flow every year forever. The firm-specific discount rate is 7%, and the risk-free rate is 2%. What is the enterprise value of the company? (c) The company has $150,000 in cash and $50,000 in debt. In addition, it has 7000 shares outstanding. What is the company's stock price per share?
75. If a business has an asset turnover (Sales/Assets) of 5, plans to continue its current strategy, and wants to increase sales by $1,000,000, in general, then assets will need to be increased by: O A. $5,000,000. O B. $ 200,000.
ACTIVITY 1. MULTIPLE CHOICE wblupi moit boog aamoz a adT Directions: Encircle the letter of the correct answer. 1. MCL Company has a total quick asset of P100,000.00 and quick ratio of 10. How much is the current liabilities of the entity? a. P1,000,000.00 b. P1,100,000.00 c. P900,000.00 d. P10,000.00 2. If the company's net sales is P250,000.00 and the average accounts receivable is P50,000.00, what is the A/R turnover ratio? c. P200,000.00 m d. P300,000.00 a. 5 To Coubrc bns 00.000,000 3. From a current ratio of 4 in 2018, the current ratio of the company is 5 in 2019. b. 1/5 a. This is something good from a liquidity standpoint. b. This is something bad from a liquidity standpoint c. This data has no implication on the liquidity status of the company. d. All of the above.
6
Beach Wear has current liabilities of RM350,000, a quick ratio of 1.65, inventory turnover of 4.7, and a current ratio of 2.9. What is the cost of goods sold? Select one: a. RM2,056,250 b. RM1,760,750 c. RM1,950,000 d. RM1,980,500

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Asset Turnover = 12 What does that mean??? a. For every $12 in total assets, you generated $1.00 in sales. b. You used up your inventory 12 times this period. c. For every $1.00 in total assets, you generated $12 in sales. d. For every $1.00 in average assets, you have $12 in total liabilities.