Q: A firm has a long-term debt-equity ratio of 0.4. Shareholders’ equity is $.95 million. Current…
A: Here,Debt Equity Ratio is 0.4Equity is $0.95 millionCurrent Assets is $350,000Current Ratio is 2
Q: Assume the following relationships for the Caulder Corp.: Sales/Total assets 2.1× Return on assets…
A: The overall indication of the yield percentage of the company from all the activities is denoted by…
Q: The following data apply to ABC Company (millions of dollars): Cash and equivalents $150.00 Fixed…
A: Dear student as per Bartleby answering guidelines a subject expert can answer on three sub parts of…
Q: The following data apply to Cavendish & Company in ($m) Cash & Marketable Securities $ 100…
A: a) Accounts receivable / Sales *365=40
Q: Here is a simplified balance sheet for Caterpillar Tractor: Caterpillar Tractor Balance Sheet ($ in…
A: It is given that: Shares outstanding – 660 mil Market price - $86 Book value of the company – 17,535
Q: Given the following information, compute the current and quick ratios: Cash $ 120,000 Accounts…
A: current ratio = current assets/ current liabilities = (cash +accounts receivable…
Q: Y3K, Inc., has sales of $6,209, total assets of $2,825, and a debt-equity ratio of 1.10. If its…
A: Net income is the amount of profit left by the company after paying all the operating and…
Q: Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so…
A: Ratio analysis is a powerful tool used by businesses, investors, and financial analysts to evaluate…
Q: Lee Corporation has the following information: Sales/Total Assets = 1.5; Return on assets (ROA) =…
A: Return on assets :— It is calculated by dividing operating income by total assets. Return on…
Q: North Star had the following data (thousands of dollars): Cash and equivalents 100.00 Fixed assets…
A: Quick Ratio shows the liquidity of the entity to pay off the short term obligations out of quick…
Q: compute the current and quick ratios
A: Liquidity ratio is the ability of the business to pay the amount due as and when they occurs. These…
Q: Motorola Credit Corporation's annual report: (dollars in millions) $ 307 Net revenue (sales) Net…
A: given information net sales = 307 millions net income = 164 millions total assets = 2225 millions…
Q: Given the following data for the Novak Corp.: Current liabilities $560 Long-term debt 460 Common…
A: A common size balance sheet is a financial statement that displays both the numeric value and…
Q: Mobius, Incorporated, has a total debt ratio of 54. What is its debt - equity ratio?Note: Do nat…
A: Total debt ratio is the metric derived by dividing the sum of total liabilities by total assets. It…
Q: Zumbahlen Inc. has the following balance sheet. How much total operating capital does the firm have?…
A: Operating Capital: The capital used in a company's daily operations, calculated as net working…
Q: en Machine Tools has total assets of $3,130,000 and current assets of $866,000. It turns over its…
A: Return on shareholders’ equity is e measure of profit generated by a company against total…
Q: A firm has a long-term debt-equity ratio of 0.5. Shareholders’ equity is $1.04 million. Current…
A: We need to use the following ratios to calculate total debt ratio Long-term debt= Shareholders…
Q: firm has a long-term debt-equity ratio of 0.5. Shareholders’ equity is $0.97 million. Current assets…
A: in this we have to calculate total debt than from this we will get total debt ratio.
Q: EMM, Inc. has the following balance sheet: EMM, Incorporated Balance Sheet as of 12/31/X0…
A: 1.If the firm expects sales to rise from $17,000 to $21,000, what are the forecasted levels of…
Q: Consider this simplified balance sheet for Geomorph Trading: Current assets $ 350 Current…
A: Financial ratios are quantitative tools used to analyze and evaluate a company's financial…
Q: Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 110…
A: A) Debt-Equity Ratio=Total debt/Total shareholders' equity Total debt=Long term debt+ current…
Q: Calculate the company cost of capital. (Ignore taxes. Do not round intermediate calculations. Enter…
A: The weighted average cost of capital measures the typical cost a business pays to finance its…
Q: Data for Barry Computer Co. and Its Industry averages follow. The firm's debt is priced at par, so…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Jackson Corporation has a profit margin of 11 percent, total asset turnover of 1.09, and ROE of…
A: Profit margin = 11%Total asset turnover = 1.09Return on Equity (ROE) = 14.37%
Q: The following information was taken from Slater Company's balance sheet: Fixed assets (net)…
A: Ratio of fixed assets to long-term liabilities = Fixed assets/Long term liabilities Ratio of…
Q: Xitin Inc. has the following balance sheet. How much total operating capital does the firm have?
A: Operating capital is the amount required to meet the expenses related to daily business activities.…
Q: Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions):…
A: A WACC computation takes into account all sources of capital, including preferred stock, common…
Q: North Star had the following data (thousands of dollars): Cash and equivalents 100.00 Fixed assets…
A: Ratio analysis is a method of measuring the financial position of the organization. It includes…
Q: Easter Egg and Poultry Company has $1,700,000 in assets and $681,000 of debt. It reports net income…
A: In ratios, two figures from two different balance sheet dates are compared. It is a quantitative…
Q: Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.5× Return on assets…
A: Sales/Total assets = sta = 1.5Return on assets = roa = 8.0%Return on equity = roe = 12.0%
Q: 1. SLM, Inc., with sales of $1,000, has the following balance sheet: SLM, Incorporated Balance Sheet…
A: The percentage of sales method of forecasting is a method that makes forecasting predictions based…
Q: A company has the following information: Earnings before interest and taxes Interest expense Tax…
A: The free cash flow to equity(FCFE) is calculated using following equation
Q: 1. A. the following data apply to Jacobs and Associates (millions of dollars): Cash and marketable…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Bello, Inc., has a total debt ratio of .51. a. What is its debt-equity ratto? (Do not round…
A: Debt is a borrowed portion and equity is the own funds, these two consist of the firm’s capital…
Q: A company has the following balance sheet. What is its total net operating capital? (Round it to a…
A: Cash = $20Short term investments = $30Accounts receivable = $50Inventory = $80Net fixed assets =…
Q: The following table presents information for Golden Fleece Financial. Long-term debt outstanding…
A: Long-term debt outstanding = $340,000 Current yield to maturity on debt = cost of debt = cd = 8.50%…
Q: A public company has the following balance sheet ($000’s) Cash…
A: WACC: The weighted average cost of capital is calculated as per weight and cost of each capital used…
Q: lf of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round…
A: Profit margin refers to the amount at which the company is earning profitsd from business by…
Q: Nakamura, Incorporated, has a total debt ratio of .57, total debt of $317,000, and net income of…
A: Total debt ratio is calculated by dividing total debts by total assets. It is also known as debt to…
Q: Data pertaining to the current position of Forte Company follow: Cash $440,000 Marketable securities…
A: SOLUTION- FORMULA- WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES CURRENT RATIO = CURRENT…
North Star had the following data (thousands of dollars):
| Cash and equivalents | 100.00 |
| Fixed assets | 283.50 |
| Sales | 1,000.00 |
| Net income | 50.00 |
| Current liabilities | 105.50 |
| Notes payable to bank | 20.00 |
| Current ratio | 3.00 |
| DSO | 40.55 days |
| ROE | 12.00% |
North Star has no
Find North Star’s (6) common equity.
Do not round intermediate calculations; round final answers to two decimal places.
Formula to calculate common equity is:
Return on equity = Net income/Common equity
Common equity = Net income/ROE
Step by step
Solved in 2 steps
- The following data apply to the next six problems. Consider Fisher & Company's financial data as follows (unit: millions of dollars except ratio figures):Cash and marketable securities $100Fixed assets $280Sales $1,200Net income $358Inventory $180Current ratio 3.2Average collection period 45 daysAverage common equity $500Find Fisher's accounts receivable.(a) $147.95 (b) $127.65(c) $225.78 (d) $290.45A firm has a long-term debt-equity ratio of 0.4. Shareholders’ equity is $839,800. Current assets are $237,800, and the current ratio is 2.25. The only current liabilities are notes payable. What is the total debt ratio? (Round your answer to 2 decimal places.) Total debt ratioClayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…
- Data pertaining to the current position of Forte Company follow:Cash $412,500Marketable securities 187,500Accounts and notes receivable (net) 300,000Inventories 700,000Prepaid expenses 50,000Accounts payable 200,000Notes payable (short-term) 250,000Accrued expenses 300,000 Instructions1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios in parts b through j to one decimal place.2. List the following captions on a sheet of paper:Transaction Working Capital Current Ratio Quick Ratio Compute the working capital, the…ssume the following relationships for the Caulder Corp.: Sales/Total assets 1.2\times Return on assets (ROA ) 5.0% Return on equity (ROE) 15.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?
- Miracle Bank's balance sheet is the following. Assets Reserves Loans Short-term securities a. 70 Miracle Bank's leverage ratio is Ob. 0.0857 c. 8.57 Miracle Bank Od. 80 Liabilities & Owners' Equity $600 Deposits 6,400 Debt 1000 Capital (owners' equity) $7,000 990 10SLM, Inc., with sales of $800, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Accounts receivable $ 200 Trade accounts payable $ 120 Inventory 360 Long-term debt 510 Plant 800 Equity 730 $ 1,360 $ 1,360 It earns 9 percent on sales (after taxes) and pays no dividends. Round your answers to the nearest dollar. Determine the balance sheet entries for sales of $1,400 using the percent of sales method of forecasting. Accounts receivable: $ Inventory: $ Trade accounts payable: $ Will the firm need external financing to grow to sales of $1,400? If Yes, calculate the amount of external funding required, if No, enter zero. , the amount of the external funds needed is $ . Construct the new balance sheet and use newly issued long-term debt to cover a financial deficiency, if any. SLM, Incorporated Balance Sheet as of 12/31/X1 Assets Liabilities and Equity Accounts…The following data apply to Jacobus and Associates (millions of dollars): Cash and marketable securities $ 100,00Fixed assets $ 283,50Sales $1.000,00Net Income $ 50,00Quick ratio 2,0Current ratio 3,0DSO 40,55 daysROE 12%Jacobus has no preferred stock – only common equity, current liabilities and long termdebt.a. Find Jacobus’s (1) Account receivable, (2) current liabilities, (3) current assets, (4)Total assets, (5) ROA, (6) common equity, and (7) long term debtb. in part a, you should have found Jacobus’s accounts receivable = $111,1 million. IfJacobus could reduce its DSO fro, 40,55 days to 30,4 days while holding other thingsconstant, how much cash would generate? If this cash were used to buy backcommon stock (at book value), this reducing the amount of common equity, howwould this affect (1) the ROE, (2) the ROA, (3) the ratio of total debt to total assets?
- The following data apply to the next six problems. Consider Fisher & Company's financial data as follows (unit: millions of dollars except ratio figures):Cash and marketable securities $100Fixed assets $280Sales $1,200Net income $358Inventory $180Current ratio 3.2Average collection period 45 daysAverage common equity $500 Calculate the amount of current assets.(a) $223 (b) $248(c) $280 (d) $428Flimsy Safe Room’s, Inc. has total assets of $1,000,000. The firm has $100,000 in inventory. It has $300,000 in long-term debt and $400,000 in current assets. The common stockholders’ equity is $400,000. The firm does not have any preferred stock outstanding. What is Flimsy Safe Room's total debt ratio defined as total liabilities to total assets? Question 1 options: A) 0.6 = 60% B) 0.4 = 40% C) 0.5 = 50% D) 0.3 = 30%Effect of transactions on current position analysis Data pertaining to the current position of Forte Company follow: Cash $412,500 Marketable securities 187,500 Accounts and notes receivable (net) 300,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 200,000 Notes payable (short-term) 250,000 Accrued expenses 300,000 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round to one decimal place. Working Capital: $fill in the blank 1 Current Ratio: fill in the blank 2 Quick Ratio: fill in the blank 3 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place. a. Sold marketable securities at no gain or loss, $70,000. b. Paid accounts payable, $125,000. c. Purchased goods on account, $110,000.…
