Use the formulas you learned about in the previous stage of the problem to answer the following questions. Given the value of total assets turnover, along with the level of total assets given, this means that Royval's sales must be Given the value of DSO, along with the level of sales you already calculated, this means that Royval's receivables must be Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be Given the value of the fixed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets must be equal to Solving for cash yields a value of cash of inventories, the level of current liabilities must be for Royval. Given the current ratio of 2 and values of cash, accounts receivable, and Given the level of retained earnings, current liabilities, and long-term debt, along with the relationship between total assets and total liabilities and equity, this means that Royval's common stock must be Given the gross profit margin and the level of sales you have already calculated, this means that Royval has a cost of goods sold of

Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 7DQ: From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio...
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Use the formulas you learned about in the previous stage of the problem to answer the following questions.
Given the value of total assets turnover, along with the level of total assets given, this means that Royval's sales must be
Given the value of DSO, along with the level of sales you already calculated, this means that Royval's receivables must be
Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be
Given the value of the fixed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets must
be equal to
Solving for cash yields a value of cash of
inventories, the level of current liabilities must be
for Royval. Given the current ratio of 2 and values of cash, accounts receivable, and
Given the level of retained earnings, current liabilities, and long-term debt, along with the relationship between total assets and total liabilities
and equity, this means that Royval's common stock must be
Given the gross profit margin and the level of sales you have already calculated, this means that Royval has a cost of goods sold of
Transcribed Image Text:Use the formulas you learned about in the previous stage of the problem to answer the following questions. Given the value of total assets turnover, along with the level of total assets given, this means that Royval's sales must be Given the value of DSO, along with the level of sales you already calculated, this means that Royval's receivables must be Given the value of the inventory ratio, along with the level of sales you already calculated, this means that Royval's inventories must be Given the value of the fixed assets turnover ratio, as well as the level of sales, this means that Royval's fixed assets must be equal to Solving for cash yields a value of cash of inventories, the level of current liabilities must be for Royval. Given the current ratio of 2 and values of cash, accounts receivable, and Given the level of retained earnings, current liabilities, and long-term debt, along with the relationship between total assets and total liabilities and equity, this means that Royval's common stock must be Given the gross profit margin and the level of sales you have already calculated, this means that Royval has a cost of goods sold of
Now it's time for you to practice what you've learned.
Suppose that Royval Inc has the following data:
Total assets turnover
Days sales outstanding
Inventory turnover ratio
Fixed assets turnover
Current ratio
Gross profit margin on sales:
Cash
Accounts receivable
Inventories
Also suppose that Royval Inc has the following balance sheet:
Fixed assets
Total assets
Assets
Sales
1.5
36.5 days
$425,000
5
4
2
30.00%
Balance Sheet
Liabilities
Current Liabilities
Long-term debt
Common stock
Retained earnings
Total Liabilities and equity
Cost of goods sold
$97,750
$93,500
Transcribed Image Text:Now it's time for you to practice what you've learned. Suppose that Royval Inc has the following data: Total assets turnover Days sales outstanding Inventory turnover ratio Fixed assets turnover Current ratio Gross profit margin on sales: Cash Accounts receivable Inventories Also suppose that Royval Inc has the following balance sheet: Fixed assets Total assets Assets Sales 1.5 36.5 days $425,000 5 4 2 30.00% Balance Sheet Liabilities Current Liabilities Long-term debt Common stock Retained earnings Total Liabilities and equity Cost of goods sold $97,750 $93,500
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