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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ashvin

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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