OLloyd Inc. has sales of $150,000, a net income of $13,500, and the following balance sheet:Cash$39,375Accounts payable69,375Notes payable to bank153,750Total current liabilitiesTotal current assets$262,50063,375Net fixed assets112,500249,000Total assets$375,000Total liabilities and equity$375,000The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industryaverage, 1.75x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to1.75x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changesoccur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places.%What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places.ReceivablesInventoriesLong-term debtCommon equity$39,75022,875$62,625

Current Ratio=Current Assets Current LiabilitiesCurrent Ratio=26250062625Current Ratio=4.19Current…

lowing balance sheet: $39,750 22,875 $62,625 63,375 249,000 $375,000 ered to the point where the current ratio is equal to the industry are sold and not replaced (thus reducing the current ratio to tock can be repurchased at book value); and if no other changes calculations. Round your answer to two decimal places. calculations. Round your answer to two decimal places.

lowing balance sheet: $39,750 22,875 $62,625 63,375 249,000 $375,000 ered to the point where the current ratio is equal to the industry are sold and not replaced (thus reducing the current ratio to tock can be repurchased at book value); and if no other changes calculations. Round your answer to two decimal places. calculations. Round your answer to two decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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THE ANSWER IS NOT 21% OR 0.2% can you give me a few answers to try? Thank you!
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Assume $10,000 is the present value of the cash flows shown below at a discount rate of 10%. If the three missing cash flows are equal amounts, then the missing cash flow is 0 10% |--- 1 ? 2 ? 3 ? 4 --| $11,000 Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Numeric Response