he Lawrence Company has a ratio of long-term debt to long-term debt plus equity of .37 and a current ratio of 1.5. Current liabilities are $930, sales are $6,350, profit margin is 9.6 percent, and ROE is 19.8 percent. What is the amount of the firm’s net fixed assets?
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
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.
Problem 3-15 Ratios and Fixed Assets
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The Lawrence Company has a ratio of long-term debt to long-term debt plus equity of .37 and a current ratio of 1.5. Current liabilities are $930, sales are $6,350, profit margin is 9.6 percent, and ROE is 19.8 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Problem 3-16 Calculating the Cash Coverage Ratio
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FVA Inc.’s net income for the most recent year was $34,625. The tax rate was 24 percent. The firm paid $9,120 in total interest expense and deducted $9,970 in |
Problem 3-2 Equity Multiplier and
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Bello Company has a debt-equity ratio of .6. |
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What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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b. |
What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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c. |
What is the net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
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