*Calculation is based on a 365-day year. Balance Sheet as of December $78 74 147 $299 Cash and equivalents Accounts receivables Inventories Total current assets Gross fixed assets Less depreciation Net fixed assets Total assets Net sales Cost of goods sold Gross profit Selling expenses EBITDA 216 55 $161 $460 Taxes (25%) Net Income Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income Statement for Year Ended December 31, 2021 (millions of dollars) $815.00 670.00 $145.00 78.50 66.50 14.00 52.50 5.50 Current ratio Debt to total capital Times interest earned EBITDA coverage Inventory turnover Days sales outstanding Fixed assets turnover 31, 2021 (millions of dollars) Accounts payable Total assets turnover Profit margin Return on total assets Return on common equity Return on invested capital Other current liabilities Notes payable Total current liabilities Long-term debt Profit margin Total assets turnover Equity multiplier Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity a. Calculate the following ratios. Do not round intermediate calculations. Round your answers to two decimal places. Firm Industry Average % days % $ 37 28 37 $102 23 $125 124 211 $335 $460 $ $ 47.00 11.75 35.25 2x 15% 5x 10x 9x 25days 6x 3x 3.75% 11.25% 15.70% 14.60% b. Construct a DuPont equation, and the industry. Do not round Intermediate calculations. Round your answers to two decimal places. Firm Industry. 3.75% 3x
*Calculation is based on a 365-day year. Balance Sheet as of December $78 74 147 $299 Cash and equivalents Accounts receivables Inventories Total current assets Gross fixed assets Less depreciation Net fixed assets Total assets Net sales Cost of goods sold Gross profit Selling expenses EBITDA 216 55 $161 $460 Taxes (25%) Net Income Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income Statement for Year Ended December 31, 2021 (millions of dollars) $815.00 670.00 $145.00 78.50 66.50 14.00 52.50 5.50 Current ratio Debt to total capital Times interest earned EBITDA coverage Inventory turnover Days sales outstanding Fixed assets turnover 31, 2021 (millions of dollars) Accounts payable Total assets turnover Profit margin Return on total assets Return on common equity Return on invested capital Other current liabilities Notes payable Total current liabilities Long-term debt Profit margin Total assets turnover Equity multiplier Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity a. Calculate the following ratios. Do not round intermediate calculations. Round your answers to two decimal places. Firm Industry Average % days % $ 37 28 37 $102 23 $125 124 211 $335 $460 $ $ 47.00 11.75 35.25 2x 15% 5x 10x 9x 25days 6x 3x 3.75% 11.25% 15.70% 14.60% b. Construct a DuPont equation, and the industry. Do not round Intermediate calculations. Round your answers to two decimal places. Firm Industry. 3.75% 3x
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...
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