Selzer Inc. sells all its merchandise on credit. It has a profit margin of 4 percent, days sales outstanding equal to 60 days, receivables of $150,000, total assets of $3 million, and a debt ratio of 0.64, What is the firm's return on equity (ROE)? Assume a 365-day year.

Q: The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and…

A: Return on asset = Return on equity/(1+Debt equity ratio)  Return on equity = Net Income/Total equity…

Q: Alta Construction days sales outstanding is 50 days (365 days in a year). The company’s accounts…

A: Financial ratios give us an idea about the financial performance of the company. Inventory turn over…

Q: Chutes & Co. has interest expense of $1.05 million and an operating margin of 11.9% on total sales…

A: Interest rate ratio (ICR) is a financial measure of a company's ability to meet interest payments on…

Q: For the next fiscal year, you forecast net income of $49,600 and ending assets of $505,800. Your…

A: Debt equity ratio = total debts/ shareholders fund Share holders include share capital ,reserves and…

Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What…

A: We need to use below equations to solve above problems.ROA = Operating profit margin* Assets…

Q: Question: Lee Sun's has sales of $3,500, total assets of $3,200, and a profit margin of 5 percent.…

A: Step 1: Given, Lee Sun's has sales = $3,500 at a profit margin = 5%, Total Assets = $3,200,Total…

Q: Bulldogs Inc. has a total asset balance composed of 30% current and 70% non-current. The total…

A: Equity ratio of the company means how much equity portion consisting out of total assets. Debt ratio…

Q: In the past year, TVG had revenues of $3.03 million, cost of goods sold of $2.53 million, and…

A: TIME INTEREST EARNED RATIO Times Interest Earned Ratio is the Ratio Between Earning Before…

Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…

A: Formula: Times interest ratio = Operating income / interest expense

Q: For the next fiscal year, you forecast net income of $49,400 and ending assets of 506,900. Your…

A: 1. Forecasted Net Income: $49,4002. Ending Assets: $506,9003. Payout Ratio: 10.6%4. Beginning…

Q: A firm paid interest of $40 this year. Last year, they had $500 in debt. This year, they had $300 in…

A: To calculate the cash flow to creditors, we need to subtract the net borrowing from the interest…

Q: The interest coverage ratio is times.

A: Interest coverage ratio is a financial metric that helps in determining the ability of a business…

Q: Sales for Company Y are $100,000 in 2019 and the net profit margin is 9.0%. The Return on Equity is…

A: Solution:- Net profit margin means the amount of net profit as a percentage of sales. So, net profit…

Q: Ticks Inc. has a total asset balance composed of 30% current and 70% non-current. The total amount…

A: calculation of total assets of the company... As per Equation Total of Assets=Total of…

Q: Tulips Companý has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts…

A: ANSWER 1)DSO=40 ANNUAL SALES=7300000 NUMBER OF DAYS IN A YEAR=365 DSO = (ACCOUNT RECEIVABLE/ANNUAL…

Q: Help with this Question

A: To find the company's net income, we can use the relationship between Return on Equity (ROE), net…

Q: For the year ended December 31, 2019, Settles Inc. earned an ROI of 9.6%. Sales for the year were…

A:

Q: KY Shoe Stores has $2,000,000 in sales and turns over its assets 2.5 times per year. The firm earns…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Q: A company buys 2mm items for $3 each and sells 1mm of those items during a year for $6 each.…

A: EBITDA: EBITDA is an acronym of earnings before interest, taxes, depreciation, and amortisation, is…

Q: A firm has total interest charges of $10,000 per year, sates of $1 million, a tax rate of 40…

A: Times interest earned ratio or interest coverage ratio shows ability of the company in paying it's…

Q: A business starts this year with 2,500,000 assets with no debt. The expected ROE equals 10%. Suppose…

A: Return on equity (ROE) is used to measure the returns from shareholder’s equity. Shareholder’s…

Q: Use the following scenario to solve A-C. H2X Incorporated has accounts payable of $400,000 (a…

A: WACC means weighted average cost of all the sources through which funds are raised. WACC is equal to…

Q: Firm B has accounts receivable of $5,000,000 and annual sales of $9,000,000. What is the firm's days…

A: Accounts Receivable = $5,000,000Number of Days in Period = 365Annual sales = $9,000,000

Q: The newspaper reported last week that Chen Enterprises earned $34.05 million this year. The report…

A: The earnings growth rate can be determined by using the company's retention ratio and the equity…

Q: Blue Co. is funded by both debt and equity with a total debt to total asset ratio of 40%. If the…

A: Debt to total assets  = 40% That means total assets = 100% Total assets = Equity + Debt 100% =…

Q: Mandesa, Inc has current liabilities of $8 million, current ratio of 2 times inventory turnover of…

A: We analyze financial statements of a company using different financial ratios.These financial ratios…

Q: ↑ Chutes & Co. has interest expense of $1.92 million and an operating margin of 10.9% on total sales…

A: The interest coverage ratio offers important clues about a company's financial health and debt…

Q: ROA ?

A: To calculate the firm's Return on Assets (ROA), we need to use the following formula:Given:Profit…

Q: Aggarwal Inc. buys on terms of 2/15, net 45, and it always pays on the 45th day. The CFO calculates…

A: We know that:The average amount of costly trade credit carried by the firm is $275,000.The firm pays…

Q: A firm has the following accounts; current liabilities = $30,000,000, sales = $245,000,000. The firm…

A: Here,CurrentRatio is 1.76 timesInventory Turnover Period is 15.5 timesAverage Collection Period is…

Q: Answer please

A: Now, calculate the Return on Equity (ROE): ROE=(Profit Margin)×(Total Asset Turnover)×(Equity…

Q: firm has a return on equity of 17 percent. The total asset turnover is 1.6 and the profit margin is…

A: The return on equity depends on the two factors only one is how much is the net income and another…

Q: Jerry Rice and Grain Stores has $4,780,000 in yearly sales. The firm earns 4.5 percent on each…

A: Given, Sales $4,780,000 Net profit margin is 4.5%

Q: A firm is fully invested in commercial real estate. The commercial real estate it owns experienced a…

A: Debt refers to the funds raised from the outside sources in order to finance the business…

Q: Ladders, Inc. has a net profit margin of 5.4% on sales of $49.3 million. It has book value of equity…

A: Profitability ratios refer to the type of ratios that evaluate the financial performance of the…

Q: Needham Pharmaceuticals has a profit margin of 3.5% and an equity multiplier of 1.5. Its sales are…

A: Profit margin = 3.50% Equity multiplier = 1.50 Sales= $100 Total assets = $60 million

Q: The newspaper reported last week that Bennington Enterprises earned $34.09 million this year. The…

A: Earning growth rate can be calculated by multiplying the ROE with retention ratio. Earning growth…

Q: Encore Construction days sales outstanding is 50 days (365 days in a year). The company’s accounts…

A: Inventory Turnover Ratio is an activity ratio which defines the number of times a corporation is…

Q: hite Waters, Inc., has sales of $28 million, total assets of $36 million, and total debt of $11…

A: ROA is return on assets and is measure of profitability and can be calculated by net income divided…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.