Please solve this accounting problem not use ai Stoney Mason, Inc., has sales of $6 million, a totalasset turnover ratio of 6 for the year, and net profitsof $120,000.a. What is the company's return on assets or earningpower?b. The company is considering the installation of newpoint-of-sales cash registers throughout its stores.This equipment is expected to increase efficiency ininventory control, reduce clerical errors, andimprove record-keeping throughout the system. Thenew equipment will increase the investment inassets by 20 percent and is expected to increase thenet profit margin from 2 to 3 percent. No change insales is expected. What is the effect of the newequipment on the return on assets ratio or earningpower?

Step 1: Define Return On AssetReturn on asset (ROA) is a profitability ratio to measure how much net…

Answered: Stoney Mason, Inc., has sales of $6…

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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Your consulting firm was recently hired to improve the performance of ABC Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to analyze the firm's cash cycle. Using the following information and a 365-day year, what is the firm’s operating cycle? Average inventory = $75,000 Annual sales = $875,000 Annual cost of goods sold = $525,000 Average accounts receivable = $160,000 Average accounts payable = $25,000
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As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.6 million, cost of goods sold of $19.5 million, 50 operating weeks a year, total average on-hand inventory of $2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- ✓inventory weeks of supply and -Select- ✓accounts receivable weeks of supply or -Select- are ways to improve overall firm performance. accounts payable weeks of supply
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What is your firm's cash conversion cycle?
Your boss at LK Enterprises asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $135,500, accounts receivable were $102,400, and accounts payable were at $121,700. You also see that the company had sales of $356,000 and that cost of goods sold was $298,500. What is your firm's cash conversion cycle? Round to the nearest day. Help
Your boss at LK Enterprises asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $135,500, accounts receivable were $102,400, and accounts payable were at $121,700. You also see that the company had sales of $356,000 and that cost of goods sold was $298,500. What is your firm's cash conversion cycle? Round to the nearest day.

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