Cash Receivables Inventories Total CA Net fixed assets Total assets Sales Net income 280 21 14 70 280 364 126 490 % (use 2 decimals) Accounts payable Other current liabilities Total CL Long-term debt Common equity Total liab. and equity 42 28 70 140 280 420 You have the above balance sheet and income statement for Ahmed's inc. You want to reduce your inventory to generate funds to buy back common stock at the book value. You will reduce inventory so that the current ratio is equal to 2.09 There is no effect on sales or net income. What is the new ROE?
Cash Receivables Inventories Total CA Net fixed assets Total assets Sales Net income 280 21 14 70 280 364 126 490 % (use 2 decimals) Accounts payable Other current liabilities Total CL Long-term debt Common equity Total liab. and equity 42 28 70 140 280 420 You have the above balance sheet and income statement for Ahmed's inc. You want to reduce your inventory to generate funds to buy back common stock at the book value. You will reduce inventory so that the current ratio is equal to 2.09 There is no effect on sales or net income. What is the new ROE?
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4CE
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