# Problem 4-22 Financial Ratios (LO3)### Financial Ratios:- **Long-term debt ratio**: 0.4- **Times interest earned**: 8.4- **Current ratio**: 1.4- **Quick ratio**: 1.2- **Cash ratio**: 0.2- **Inventory turnover**: 5.0- **Average collection period**: 73 days### Instructions:Use the information provided in the tables to determine the missing entries and calculate the company’s return on equity. **Note:** Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values.### Task Details:Complete the question by entering your answers in the tabs below.#### Balance Sheet (Figures in $ millions)- **Assets** - Cash and marketable securities: (Missing Value) | Last Year: $20.00 - Accounts receivable: $34.00 - Inventories: $26.00 - Total current assets: $80.00 - Net property, plant, and equipment: $25.00 - Total assets: $105.00- **Liabilities and Shareholders' Equity** - Accounts payable: $25.00 | Last Year: $20.00 - Notes payable: $30.00 | Last Year: $35.00 - Total current liabilities: $55.00 - Long-term debt: $20.00 - Shareholders’ equity: (Missing Value) | Last Year: $30.00 - Total liabilities and shareholders’ equity: $115.00 | Last Year: $105.00### Additional Notes:- Enter your answers in millions.- Round intermediate calculations and final answers to 2 decimal places.The user is asked to utilize these figures to complete the financial analysis, focusing on key ratios and values to understand the company's financial status better. **Problem 4-22 Financial Ratios (LO3)****Financial Ratios:**- Long-term debt ratio: 0.4- Times interest earned: 8.0- Current ratio: 1.4- Quick ratio: 1.0- Cash ratio: 0.2- Inventory turnover: 5.0- Average collection period: 73 daysUse the above information from the tables to work out the missing entries and calculate the company's return on equity. **Note:** Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values.**Instructions:**Enter your answers in the tabs below, rounding intermediate calculations and final answers to two decimal places.**Tabs:**- Income Statement- Balance Sheet**Income Statement (Figures in $ millions):**| Item | Amount ||----------------------------------------------|---------|| Net sales | || Cost of goods sold | || Selling, general, and administrative expenses| 10.00 || Depreciation | 20.00 || Earnings before interest and taxes (EBIT) | || Interest expense | || Income before tax | || Tax (35% of income before tax) | || Net income | |Use the provided financial ratios and the data tables to fill in the necessary values and calculate the company's return on equity.

SOLUTION:- Total current liabilities=25+30=55 total current assets=55 x 14=77 cash=55 x 0.2 =11…

Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values. Note: Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places. Show less

Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values. Note: Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places. Show less

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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