Consider the following financial data for Tom’s Music Stores: Statement of Financial Position as of December 31, 2012 Cash $ 71,500 Accounts payable $ 91,000 Accounts receivable 235,500 Notes payable 125,500 Inventories 289,000 Accruals 68,500 Total current assets $ 596,000 Total current liabilities $ 285,000 Long-term debt 368,000 Net fixed assets 590,500 Common equity 533,500 Total assets $ 1,186,500 Total liabilities & equity $ 1,186,500 Income Statement for the Year Ended December 31, 2012 Net sales $ 788,000 Cost of merchandise sold 505,500 Gross profit $ 282,500 Operating expenses 150,500 Earnings before interest and taxes (EBIT) $ 132,000 Interest expense 69,000 Earnings before taxes (EBT) $ 63,000 Federal and state income taxes (40 percent) 25,200 Net profit $ 37,800 Calculate Tom’s days sales outstanding. a. 133.9 days b. 81.8 days c. 109.1 days d. 0.3 days e. 53.5 days
Consider the following financial data for Tom’s Music Stores: Statement of Financial Position as of December 31, 2012 Cash $ 71,500 Accounts payable $ 91,000 Accounts receivable 235,500 Notes payable 125,500 Inventories 289,000 Accruals 68,500 Total current assets $ 596,000 Total current liabilities $ 285,000 Long-term debt 368,000 Net fixed assets 590,500 Common equity 533,500 Total assets $ 1,186,500 Total liabilities & equity $ 1,186,500 Income Statement for the Year Ended December 31, 2012 Net sales $ 788,000 Cost of merchandise sold 505,500 Gross profit $ 282,500 Operating expenses 150,500 Earnings before interest and taxes (EBIT) $ 132,000 Interest expense 69,000 Earnings before taxes (EBT) $ 63,000 Federal and state income taxes (40 percent) 25,200 Net profit $ 37,800 Calculate Tom’s days sales outstanding. a. 133.9 days b. 81.8 days c. 109.1 days d. 0.3 days e. 53.5 days
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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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Consider the following financial data for Tom’s Music Stores:
Statement of Financial Position as of December 31, 2012Cash $71,500Accounts payable $ 91,000Accounts receivable 235,500Notes payable 125,500Inventories 289,000Accruals 68,500Total current assets $596,000Total current liabilities $ 285,000Long-term debt 368,000Net fixed assets 590,500Common equity 533,500Total assets $1,186,500Total liabilities & equity $ 1,186,500Income Statement for the Year Ended December 31, 2012Net sales $788,000Cost of merchandise sold 505,500Gross profit $282,500Operating expenses 150,500Earnings before interest and taxes (EBIT) $132,000Interest expense 69,000Earnings before taxes (EBT) $63,000Federal and state income taxes (40 percent) 25,200Net profit $37,800
Calculate Tom’s days sales outstanding.a. 133.9 daysb. 81.8 daysc. 109.1 daysd. 0.3 dayse. 53.5 days
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