Consider the following financial data for Leon’s Music Stores: Statement of Financial Position as of December 31, 2012 Cash & equivalents $ 100,500 Accounts payable $ 119,500 Accounts receivable 232,000 Notes payable 141,000 Inventories 281,000 Accrued wages and taxes 46,000 Total current assets $ 613,500 Total short-term liab. $ 306,500 Long-term debt 401,000 Net fixed assets 565,500 Common equity 471,500 Total assets $ 1,179,000 Total liabilities & equity $ 1,179,000 Statement of Earnings for the Year Ended December 31, 2012 Net sales $ 881,500 Cost of sales 526,000 Gross profit $ 355,500 Operating expenses 215,000 Earnings before interest and taxes (EBIT) $ 140,500 Interest expense 49,000 Earnings before taxes (EBT) $ 91,500 Federal and state income taxes (35 percent) 32,025 Net income $ 59,475 Calculate Leon’s total asset turnover. a. 2.25 b. 0.75 c. 5.04 d. 3.14 e. 21.17
Consider the following financial data for Leon’s Music Stores: Statement of Financial Position as of December 31, 2012 Cash & equivalents $ 100,500 Accounts payable $ 119,500 Accounts receivable 232,000 Notes payable 141,000 Inventories 281,000 Accrued wages and taxes 46,000 Total current assets $ 613,500 Total short-term liab. $ 306,500 Long-term debt 401,000 Net fixed assets 565,500 Common equity 471,500 Total assets $ 1,179,000 Total liabilities & equity $ 1,179,000 Statement of Earnings for the Year Ended December 31, 2012 Net sales $ 881,500 Cost of sales 526,000 Gross profit $ 355,500 Operating expenses 215,000 Earnings before interest and taxes (EBIT) $ 140,500 Interest expense 49,000 Earnings before taxes (EBT) $ 91,500 Federal and state income taxes (35 percent) 32,025 Net income $ 59,475 Calculate Leon’s total asset turnover. a. 2.25 b. 0.75 c. 5.04 d. 3.14 e. 21.17
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Consider the following financial data for Leon’s Music Stores:
Statement of Financial Position as of December 31, 2012Cash & equivalents $100,500Accounts payable $ 119,500Accounts receivable 232,000Notes payable 141,000Inventories 281,000Accrued wages and taxes 46,000Total current assets $613,500Total short-term liab. $ 306,500Long-term debt 401,000Net fixed assets 565,500Common equity 471,500Total assets $1,179,000Total liabilities & equity $ 1,179,000Statement of Earnings for the Year Ended December 31, 2012Net sales $881,500Cost of sales 526,000Gross profit $355,500Operating expenses 215,000Earnings before interest and taxes (EBIT) $140,500Interest expense 49,000Earnings before taxes (EBT) $91,500Federal and state income taxes (35 percent) 32,025Net income $59,475
Calculate Leon’s total asset turnover.a. 2.25b. 0.75c. 5.04d. 3.14e. 21.17
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