EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 3, Problem 19P
Summary Introduction
To construct:
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Suppose that you are given the following data for Niles Company :
Note: The data and calculations are based on a 365-day year.
Cash and equivalents
Fixed assets
Sales
Net income
Current liabilities
Current ratio
DSO
ROE
The current ratio is equal to
assets value of
Return on equity (ROE) is to
approximately
$225,000
$650,000
$2,500,000
$112,500
$240,000
2.5
18.25
12.00%
The days sales outstanding (DSO) ratio is equal to
accounts receivable balance of
Plugging in the relevant values for the current ratio and current liabilities, and then solving yields a current
. Adding fixed assets to current assets yields a value of total assets of
Recall the following identity:
Recall that Total Assets = Total Liabilities and Equity.
Plugging in the relevant values for ROE and net income yields a value of total common equity of
Mathematically, total liabilities and equity is equal to ▼. Plugging in the relevant values for total liabilities and equity, current liabilities, and
equity (calculated…
Suppose that you are given the following data for Niles Company :
Note: The data and calculations are based on a 365-day year.
Cash and equivalents
Fixed assets
Sales
Net income
Current liabilities
Current ratio
DSO
ROE
$225,000
$650,000
$2,500,000
$112,500
$240,000
2.5
18.25
12.00%
22. Complete the following balance sheet for the Range Company using the following
information:
Debt to Assets = 60 percent
Quick Ratio=1.1
Asset Turnover = 5x
Fixed Asset Turnover 12.037x
Current Ratio = 2
Average Collection Period = 16.837 days
Cash
Receivables
Inventory
Total Current Assets
Plant and Equipment
Total Assets
$325.000
Current Liabilities
Bonds Payable
Total Liabilities
Net Worth
Total Liabilities and Net Worth
Chapter 3 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 3 - Prob. 1QTDCh. 3 - Prob. 2QTDCh. 3 - Prob. 3QTDCh. 3 - Prob. 4QTDCh. 3 - Prob. 5QTDCh. 3 - Prob. 6QTDCh. 3 - Prob. 7QTDCh. 3 - Prob. 8QTDCh. 3 - Prob. 9QTDCh. 3 - Prob. 10QTD
Ch. 3 - Prob. 11QTDCh. 3 - Prob. 12QTDCh. 3 - Prob. 13QTDCh. 3 - Prob. 14QTDCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of 36.5 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich’s annual sales?arrow_forwardUsing the information below, fill in the gaps in the financial statement date for the Stapler Corporation: Total assets turnover: 1.5Days sales outstanding: 36.5 days* * Calculation is based on a 365-day year. Inventory turnover ratio: 5 Fixed asset turnover = 3.0 Current ratio: 2.0Gross profit margin: = Gross profit / Sales = (Sales – COGS) / Sales = 25% Cash ____________ Accounts payable ____________ Accounts receivable ____________ Long-term debt $60,000 Inventory ____________ Common stock ____________ Fixed assets ____________ Retained earnings $97,500 Total Assets $300,000 Total L&E ____________ Sales…arrow_forwardCrafty Inc. reported the following financial data. Sales, $180,000; operating expenses $160,000; average operating assets, $150,000; total liabilities, $98,000. The company requires a minimum 12% return on investments. What is the asset turnover ratio? O.133 O.18 O 1.2 O .111arrow_forward
- The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,190,000, with 75 percent of sales sold on credit. REVOLUTION CLOTHIERS Balance Sheet 20X1 Assets Cash Accounts receivable Inventory Plant and equipment Total assets $ 24,000 283,000 266,000 450,000 a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period $ 1,023,000 Accounts payable Accrued taxes Liabilities and Equity times times % times days Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. $ 279,000 107,000 130,000 100,000 150,000 257,000 $ 1,023,000arrow_forwardFootfall Manufacturing Ltd. reports the following financial information at the end of the current year: Net Sales $100,000 Debtor’s turnover ratio (based on net sales) 2 Inventory turnover ratio 1.25 Fixed assets turnover ratio 0.8 Debt to assets ratio 0.6 Net profit margin 5% Gross profit margin 25% Return on investment 2% Use the given information to fill out the templates for income statement and balance sheet given below: Income Statement of Footfall Manufacturinf Ltd. for the year ending December 31, 20XX (in $) Sales 100,000 Cost of goods sold Gross profit Other expenses Earnings before tax Tax @50% Earnings after tax Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in $) Liabilities Assets Equity Net fixed assetsLong term debt 50,000 InventoryShort term debt Debtors…arrow_forwardWhat are the annual sales for a firm with $805,853 in total liabilities, a total debt ratio of 0.84, and an asset turnover of 1.5? Numeric Responsearrow_forward
- The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,200,000, with 75 percent of sales sold on credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 20X1 a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period $ 25,000 351,000 251,000 423,000 $ 1,050,000 Accounts payable Accrued taxes Liabilities and Equity times times % times days Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity $ 247,000 97,000 136,000 Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. 100,000 150,000 320,000 $ 1,050,000arrow_forwardFind the following ratios for Motorola Credit Corporation’s annual report (round to the nearest hundredth percent): Net revenue (sales) $265 million Net earnings $147m Total assets $1,01m Total liabilities $1,768m Total stockholder’s equity $427m 3) total dept to total assets 4) return on equity 5) asset turnover (to the nearest cent) 6) profit margin on net salesarrow_forwardWhat are the annual sales for a firm with $800,000 in debt, a total debt ratio of .06, and an asset turnover of 2?arrow_forward
- Footfall Manufacturing Ltd. reports the following financial information at the end of the current year: Net sales $100.000 Debtors’ turnover ratio (based on sales) 2 Inventory turnover ratio 1.25 Fixed assets turnover ratio 0.8 Debt to assets ratio 0.6 Net profit margin 5% Gross profit margin 25% Return on investment 2% Use the given information to fill out the templates for the income statement and balance sheet given below: Income Statement of Footfall Manufacturing Ltd. for the year ending December 31, 20XX (in $) Sales 100,000 Cost of goods sold Gross profit Other expenses Earnings before tax Tax @ 50% Earnings after tax Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in $) Liabilities Amount Assets Amount Equity Net fixed assets Long term debt 50,000 Inventory Short term debt Debtors Cash…arrow_forwardAt the end of the current year, the entity reported the following financial data: Total Assets 1,200,000 Total assets turnover ratio 1.7x Fixed assets turnover ratio 2x Current ratio 2.5x Days Sales outstanding 30 days Inventory turnover ratio 4x Gross profit margin on sales 20% Note: Calcuation is based on a 365-day year. How much should be the accounts receivable balance?arrow_forwardplease see attached filearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License