Use the following information to calculate the ratios below: Total Assets 600,000 Total Liabilities 200,000 Current Assets 160,000 Current Liabilities 80,000 Net Income 70,000 Shares Outstanding 10,000 Accounts Receivable 75,000 Sales 400,000 Current Ratio Equity Multiplier.... Earnings Per Share ..... Receivables Turnover. Profit Margin _

Use the following information to calculate the ratios below: Total Assets 600,000 Total Liabilities 200,000 Current Assets 160,000 Current Liabilities 80,000 Net Income 70,000 Shares Outstanding 10,000 Accounts Receivable 75,000 Sales 400,000 Current Ratio Equity Multiplier.... Earnings Per Share ..... Receivables Turnover. Profit Margin _

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...

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Using the statements provided Calculate the following liquidity ratios: Current ratio Quick ratio Calculate the following asset management ratios: Average collection period Inventory turnover Fixed asset turnover Total asset turnover Calculate the following financial leverage ratios Debt to equity ratio Long-term debt to equity Calculate the following profitability ratios: Gross profit margin Net profit margin Return on assets Return on stockholders’ equity For example: you should present it like the text, or as:Gross margin = 1,933 divided by 8,689 = 22.2% A competitor of ACME has for the same time period reported the following three ratios: Current ratio 1.52Long-term debt to equity .25 or 25%Net profit margin .08 or 8% Given these three ratios only which company is performing better on each ratio? Also overall who would you say has the best financial performance and position. Support your answer.
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Using the information from 27A prepare the following ratios: gross profit margin profit margin return on assets earnings per share current ratio acid test ratio debt ratio Indicate what each is used for (ie: measuring efficiency, solvency etc)
Define each of the following terms:a. Liquid assetb. Liquidity ratios: current ratio; quick (acid test) ratioc. Asset management ratios: inventory turnover ratio; days sales outstanding (DSO);fixed assets turnover ratio; total assets turnover ratiod. Debt management ratios: total debt to total capital; times-interest-earned (TIE) ratioe. Profitability ratios: operating margin; profit margin; return on total assets (ROA);return on common equity (ROE); return on invested capital (ROIC); basic earning power (BEP) ratiof. Market value ratios: price/earnings (P/E) ratio; market/book (M/B) ratio; enterprise value/EBITDA ratio g. DuPont equation; benchmarking; trend analysish. “Window dressing” techniques
The following financial statements apply to Finch Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets. Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $219, 100 124,400 101, 100 19,700 17,700 10,000 9,000 1,700 1,700 20, 100 16,900 175,900 146,400 $ 43,200 $36,400 $ 4,800 $ 7,200 2,800 2,800 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 $38,500 15,800 Year 1 $182, 800 54,300 64,300 118,600 114,900 44, 100 159,000 $277,600 31, 100 94, 100 2,900 138, 100 106,400 0…
Define each of the following terms: a. Liquid asset b. Liquidity ratios: current ratio; quick ratio c. Asset management ratios: inventory turnover ratio d. Debt management ratios: total debt to total capital; times-interest-earned (TIE) ratio e. Profitability ratios: profit margin; return on total assets (ROA); return on common equity (ROE); return on invested capital (ROIC); basic earning power (BEP) ratio f. Market value ratios: price/earnings (P/E) ratio; market/book (M/B) ratio; enterprise value/EBITDA ratio
Using the Du Pont Identity Method, calculate return on equity given the following information. Profit margin 16%; total asset turnover 0.85; equity multiplier 1.5. OA. OB. O C. O D. OE 20.40% 21.40% 22.40% 23.40% 24.40%
Calculate the following ratios based on the balance sheet, income statement and cash flow prepared in question ROE Return on Capital Employed (post-tax) Net Profit Margin EBITDA Margin Effective Tax Rate Operating Cost Ratio Gross Profit Margin Total Asset Turnover Ratio Fixed Asset Turnover Ratio Receivables Turnover Ratio Leverage Ratio [Avg. Total Assets / Avg. Total Equity] FCF / EBITDA Interest Coverage Ratio Debt Service Coverage Ratio Basic EPS (Assume Face Value of each share is INR 10) Debt : Equity Ratio Income Statement (INR Cr) Units Mar/14 Saleable Units 4,570 Revenues Gross Revenues INR Cr 2,116 Less: Environment Cess INR Cr 5 Net Revenues INR Cr 2,121 Growth (%) -1.9% Expenses O&M Expenses (% of Project Costs) INR Cr 146 YoY Escalation 5.72% EBITDA INR Cr 1,974 Margin (%) 93.1% Book Depreciation INR Cr 439 Interest Expenses INR…
1. If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the current ratio of the entity? *a. P800,000b. P400,000c. 3d. 1/3 3. If net sales is P200,000 and the average accounts receivable is P50,000, what is the accounts receivable turnover ratio? *a. 4b. 1/4c. P150,000d. P250,000 5. If total assets amounted to P800,000 and total liabilities amounted to P200,000, what is the debt to equity ratio? *a. 4b. 0.3333c. 0.25d. 3
Present formulas and examples of the following financial ratios (Financial ratios)a. gross marginb. profit margin on salesc. return on equity (ROE)
Compute