Long-term debt ratio Times interest earned Current ratio Quick ratio Cash ratio Inventory turnover Average collection period Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values. Income Statement Balance Sheet Complete this question by entering your answers in the tabs below. 0.4 8.0 1.4 1.0 0.2 5.0 Assets Cash and marketable securities Accounts receivable Inventories Total current assets 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values. Note: Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places. Net property, plant, and equipment Total assets Liabilities and shareholders' equity Accounts payable Notes payable Total current liabilities Answer is complete but not entirely correct. BALANCE SHEET (Figures in $ millions) Long-term debt Shareholders' equity Total liabilities and shareholders' equity S S This Year S 115.00 S 11.00 54.00 X 12.00 X 77.00 $ 38.00 S 25.00 30.00 55.00 24.00 36.00 S 115.00 $ 20.00 34.00 26.00 80.00 25.00 $ 105.00 Last Year S 20.00 35.00 S 55.00 20.00 30.00 $ 105.00 Show less
Long-term debt ratio Times interest earned Current ratio Quick ratio Cash ratio Inventory turnover Average collection period Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values. Income Statement Balance Sheet Complete this question by entering your answers in the tabs below. 0.4 8.0 1.4 1.0 0.2 5.0 Assets Cash and marketable securities Accounts receivable Inventories Total current assets 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values. Note: Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places. Net property, plant, and equipment Total assets Liabilities and shareholders' equity Accounts payable Notes payable Total current liabilities Answer is complete but not entirely correct. BALANCE SHEET (Figures in $ millions) Long-term debt Shareholders' equity Total liabilities and shareholders' equity S S This Year S 115.00 S 11.00 54.00 X 12.00 X 77.00 $ 38.00 S 25.00 30.00 55.00 24.00 36.00 S 115.00 $ 20.00 34.00 26.00 80.00 25.00 $ 105.00 Last Year S 20.00 35.00 S 55.00 20.00 30.00 $ 105.00 Show less
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Problem 4-22 Financial Ratios (LO3)
Long-term debt ratio
Times interest earned
Current ratio
Quick ratio
Cash ratio
Inventory turnover
Average collection period
Income
Statement
0.4
8.0
1.4
1.0
0.2
Use the above information from the tables to work out the following missing entries, and then calculate the company's return on
equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values.
Balance Sheet
5.0
73 days
Complete this question by entering your answers in the tabs below.
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: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not
average, values.
Note: Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.
INCOME STATEMENT
(Figures in $ millions)
Answer is complete but not entirely correct.
Net sales
Cost of goods sold
Selling, general, and administrative expenses
Depreciation
Earnings before interest and taxes (EBIT)
Interest expense
Income before tax
S 170.00
130.00
10.00
20.00
10.00
1.25
8.75
3.06
5.69
$
$
$
< Income Statement
Balance Sheet >
Show less

Transcribed Image Text:Problem 4-22 Financial Ratios (LO3)
Long-term debt ratio
Times interest earned
Current ratio
Quick ratio
Cash ratio
Inventory turnover
Average collection period
Income
Statement
Use the above information from the tables to work out the following missing entries, and then calculate the company's return on
equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values.
Balance Sheet
Complete this question by entering your answers in the tabs below.
0.4
8.0
1.4
Assets
Cash and marketable securities
Accounts receivable
Inventories
Total current assets
1.0
0.2
5.0
73 days
Use the above information from the tables to work out the following missing entries, and then calculate the company's return
on equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not
average, values.
Note: Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.
Net property, plant, and equipment
Total assets
Liabilities and shareholders' equity
Accounts payable
Notes payable
Total current liabilities
Answer is complete but not entirely correct.
BALANCE SHEET
(Figures in $ millions)
Long-term debt
Shareholders' equity
Total liabilities and shareholders' equity
S
11.00 S
20.00
54.00
34.00
12.00 X
26.00
77.00 S
80.00
38.00✔
25.00
S 115.00 $ 105.00
S
This
Year
S
25.00 $
30.00
55.00
24.00
36.00
S 115.00
S
Last
Year
20.00
35.00
55.00
20.00
30.00
$ 105.00
S
Show less
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