Long-term debt ratio Times interest earned Current ratio Quick ratio Cash ratio Inventory turnover Average collection period INCOME STATEMENT (Figures in 5 millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Eamings before interest and taxes (EBIT) Interest expense Income before tax Tax (35% of income before tax) Net income Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) Assets Cash and marketable securities Accounts receivable Inventories 0.1 10.0 Total current assets Net property, plant, and equipment Total assets Liabilities and shareholders' equity Accounts payable Notes payable Total current liabilities 1.6 1.0 0.4 Long-term debt Shareholders' equity Total liabilities and shareholders' equity 4.0 BALANCE SHEET (Figures in $ millions) 73 days $ This Year $ $ $ 19.53 26.00 36.00 Last Year $ $ $ 20.00 $ 35.00 55.00 $ 36 50 42 128 41 169 15 40 55 20 94 169
Long-term debt ratio Times interest earned Current ratio Quick ratio Cash ratio Inventory turnover Average collection period INCOME STATEMENT (Figures in 5 millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Eamings before interest and taxes (EBIT) Interest expense Income before tax Tax (35% of income before tax) Net income Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) Assets Cash and marketable securities Accounts receivable Inventories 0.1 10.0 Total current assets Net property, plant, and equipment Total assets Liabilities and shareholders' equity Accounts payable Notes payable Total current liabilities 1.6 1.0 0.4 Long-term debt Shareholders' equity Total liabilities and shareholders' equity 4.0 BALANCE SHEET (Figures in $ millions) 73 days $ This Year $ $ $ 19.53 26.00 36.00 Last Year $ $ $ 20.00 $ 35.00 55.00 $ 36 50 42 128 41 169 15 40 55 20 94 169
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1Q: Define each of the following terms:
Liquidity ratios: current ratio; quick, or acid test,...
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![Long-term debt ratio
Times interest earned
Current ratio
Quick ratio
Cash ratio
Inventory turnover
Average collection period
Net sales
Cost of goods sold
Selling, general, and administrative exp ses
Depreciation
Eamings before interest and taxes (EBIT)
Interest expense
Income before tax
INCOME STATEMENT
(Figures in $ millions)
Tax (35% of income before tax)
Net income
Use the above information from the tables to work out the following missing entries, and then calculate the company's return on
equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in
millions. Round intermediate calculations and final answers to 2 decimal places.)
Assets
Cash and marketable securities
Accounts receivable
Inventories
Total current assets
Net property, plant, and equipment
Total assets
Liabilities and shareholders' equity
Accounts payable
Notes payable
Total current liabilities
Long-term debt
0.1
10.0
Shareholders' equity
Total liabilities and shareholders' equity
1.6
1.0
0.4
4.0
BALANCE SHEET
(Figures in $ millions)
73 days
$
This Year
$
$
$
19.53
26.00
36.00
Last Year
$
$
$
20.00 $
35.00
55.00 $
270.00 $
36
50
42
128
41
169
15
40
55
20
:
94
169](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F756650b3-18d1-4b86-ac9b-c71ad5c7bd76%2F0738afb8-c75c-40e8-b976-94288d89ad1a%2F5mz41si_processed.png&w=3840&q=75)
Transcribed Image Text:Long-term debt ratio
Times interest earned
Current ratio
Quick ratio
Cash ratio
Inventory turnover
Average collection period
Net sales
Cost of goods sold
Selling, general, and administrative exp ses
Depreciation
Eamings before interest and taxes (EBIT)
Interest expense
Income before tax
INCOME STATEMENT
(Figures in $ millions)
Tax (35% of income before tax)
Net income
Use the above information from the tables to work out the following missing entries, and then calculate the company's return on
equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in
millions. Round intermediate calculations and final answers to 2 decimal places.)
Assets
Cash and marketable securities
Accounts receivable
Inventories
Total current assets
Net property, plant, and equipment
Total assets
Liabilities and shareholders' equity
Accounts payable
Notes payable
Total current liabilities
Long-term debt
0.1
10.0
Shareholders' equity
Total liabilities and shareholders' equity
1.6
1.0
0.4
4.0
BALANCE SHEET
(Figures in $ millions)
73 days
$
This Year
$
$
$
19.53
26.00
36.00
Last Year
$
$
$
20.00 $
35.00
55.00 $
270.00 $
36
50
42
128
41
169
15
40
55
20
:
94
169
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