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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. Show less

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. Show less

FINANCIAL ACCOUNTING
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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Ashvin 

Long-term debt ratio 0.1 Times interest earned 10.0 Current ratio 1.6 Quick ratio 1.0 Cash ratio 0.6 Inventory turnover 3.0 73 days 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet 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. Assets BALANCE SHEET (Figures in $ millions) This Year Last Year Cash and marketable securities S 39.00 $ 37.00 Accounts receivable Inventories 26.00 51.00 39.00 43.00 Total current assets S 104.00 $ 131.00 Net property, plant, and equipment 171.00 42.00 Total assets S 275.00 $ 173.00 Liabilities and shareholders' equity Accounts payable Notes payable S 25.00 $ 20.00 40.00 45.00 Total current liabilities 65.00 S 65.00 Long-term debt Shareholders' equity 20.10 x 189.90 18.00 90.00 Total liabilities and shareholders' equity S 275.00 $ 173.00 < Income Statement Balance Sheet > Show less▲
Transcribed Image Text:Long-term debt ratio 0.1 Times interest earned 10.0 Current ratio 1.6 Quick ratio 1.0 Cash ratio 0.6 Inventory turnover 3.0 73 days 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet 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. Assets BALANCE SHEET (Figures in $ millions) This Year Last Year Cash and marketable securities S 39.00 $ 37.00 Accounts receivable Inventories 26.00 51.00 39.00 43.00 Total current assets S 104.00 $ 131.00 Net property, plant, and equipment 171.00 42.00 Total assets S 275.00 $ 173.00 Liabilities and shareholders' equity Accounts payable Notes payable S 25.00 $ 20.00 40.00 45.00 Total current liabilities 65.00 S 65.00 Long-term debt Shareholders' equity 20.10 x 189.90 18.00 90.00 Total liabilities and shareholders' equity S 275.00 $ 173.00 < Income Statement Balance Sheet > Show less▲
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