The balance sheet and income statement shown below (in the picture) for Zenzo Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years and the notes payable will be rolled over. Based on the balance sheet, find: 1. Current ration 2. Quick ratio 3. Days sales outstanding. Assume a 365 day year for this calculation.
The balance sheet and income statement shown below (in the picture) for Zenzo Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years and the notes payable will be rolled over. Based on the balance sheet, find: 1. Current ration 2. Quick ratio 3. Days sales outstanding. Assume a 365 day year for this calculation.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The balance sheet and income statement shown below (in the picture) for Zenzo Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years and the notes payable will be rolled over.
Based on the balance sheet, find:
1. Current ration
2. Quick ratio
3. Days sales outstanding. Assume a 365 day year for this calculation.
Transcribed Image Text:Balance sheet (mi llions of $2
Assets
Cash and securities
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Totai Assets
2500
11500
16000
30 000
20 000
50 000
Liabilities and equity.
Acounts payable
ACcruals
9500
55 00
7000
Notes payable
Total current liabilities
२२०००
Long term bonds
Totål lrabilities
15000
37 000
2000
Common stock
Refained earnings
Total common equity
To tal liabilitier and equity
// 000
13000
50 000
Income stafement (milons op $)
87500
8/813
Net SQles
Operating cotts except depreciation
bepreciation
Eamings bef interest and faxes (EBIT) 4156
Less interest
Earnings before tax er CEBT)
paxes
Net income
1531
1375
2781
973
I 80 8
0ther data
S hares outstanding Cnillions )
Common diridends
Int.rate on notes paya ble 4 d-7 bonds
Pederal plus state income tax rate
Year end stoch price
500
3२. ३
6.25 7.
35 /.
43.39
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