Given the following information: Liabilities and Equity Line item Value Assets Cash 9,000 Accounts payable 18,000 Sales 85,000 |- Operating expenses 69,700 - Depreciation = EBIT |- Interest Marketable securities 2,000 Notes payable 6,000 Accounts recelvable 3,000 Current liabilities 24,000 2,000 Inventory 31,000 Long-term debt 95,000 13,300 Current assets 45,000 Total liabilities 119,000 800 20,000 20,000 Machines 34,000 Paid-in capital = Taxable income 12,500 Real estate 80,000 Retained earnings Fixed assets 114,000 Equity - Тахes 4,125 40,000 Total assets 159,000 Total liab. & equity 159,000 = Net income 8,375 1. What is the profit margin? Show your work. 2. What is the return on assets? Show your work. 3. What is the return on equity? Show your work.

Given the following information: Liabilities and Equity Line item Value Assets Cash 9,000 Accounts payable 18,000 Sales 85,000 |- Operating expenses 69,700 - Depreciation = EBIT |- Interest Marketable securities 2,000 Notes payable 6,000 Accounts recelvable 3,000 Current liabilities 24,000 2,000 Inventory 31,000 Long-term debt 95,000 13,300 Current assets 45,000 Total liabilities 119,000 800 20,000 20,000 Machines 34,000 Paid-in capital = Taxable income 12,500 Real estate 80,000 Retained earnings Fixed assets 114,000 Equity - Тахes 4,125 40,000 Total assets 159,000 Total liab. & equity 159,000 = Net income 8,375 1. What is the profit margin? Show your work. 2. What is the return on assets? Show your work. 3. What is the return on equity? Show your work.

Name: Given the following information:AssetsLiabilities and EquityLine item
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Description: Given the following information:AssetsLiabilities and EquityLine itemValueCash9,000 Accounts payable18,000Sales85,000Marketable securities2,000 Notes payable6,000- Operating expenses 69,700|- Depreciation= EBIT- InterestAccounts receivable3,000 Curr

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

Section: Chapter Questions

Problem 1PS

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Question

Practice Pack

OFFON

Given the following information:
Assets
Liabilities and Equity
Line item
Value
Cash
9,000 Accounts payable
18,000
Sales
85,000
Marketable securities
2,000 Notes payable
6,000
- Operating expenses 69,700
|- Depreciation
= EBIT
- Interest
Accounts receivable
3,000 Current liabilities
24,000
2,000
Inventory
31,000 Long-term debt
95,000
13,300
Current assets
45,000 Total liabilities
119,000
800
Machines
34,000 Paid-in capital
20,000
= Taxable income
12,500
Real estate
80,000 Retained earnings
20,000
Fixed assets
Total assets
- Тахes
= Net income
114,000 Equity
40,000
4,125
159,000 Total liab. & equity 159,000
8,375
1. What is the profit margin? Show your work.
2. What is the return on assets? Show your work.
3. What is the return on equity? Show your work.

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Data pertaining to the current position of Forte Company follow: Cash $440,000 Marketable securities 175,000 Accounts and notes receivable (net) 335,000 Inventories 700,000 Prepaid expenses 44,000 Accounts payable 180,000 Notes payable (short-term) 230,000 Accrued expenses 290,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 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 of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. A. Sold marketable securities at no gain or loss, $80,000. B. Paid accounts payable, $120,000. C. Purchased goods on account, $130,000. D. Paid notes payable, $105,000. E. Declared a cash dividend, $140,000. F. Declared a…
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Use the following information to answer the questions: Assets Liabilities and Equity Cash 13,000 Accounts payable 18,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 3,000 Current liabilities 24,000 Inventory 27,000 Long-term debt 95,000 Current assets 45,000 Total liabilities 119,000 Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 20,000 Fixed assets 114,000 Equity 40,000 Total assets 159,000 Total liab. & equity 159,000 What is the quick ratio (aka the acid test)?
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