Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Complete the
- Total assets turnover: 1.5 X
- Days sales outstanding: 36.5 days (Calculation is based on a 365-day year)
- Inventory turnover ratio: 5 X
- Fixed assets turnover: 3.0 X
- Current ratio: 2.0 X
- Gross profit margin on sales: (Sales - Cost of goods sold) ∕ Sales = 25%
|
Cash |
------------ |
Current Liabilities |
-------- |
|
Accounts Receivables |
------------ |
Long Term Liabilities |
60000 |
|
Inventories |
------------ |
Common Stock |
-------- |
|
Fixed Assets |
------------ |
|
97500 |
|
Total Assets |
300000 |
Total Liabilities and Equity |
--------- |
|
Sales |
|
Cost of goods sold |
--------- |
Interpret the current ratio, total assets turnover ratio, inventory turnover ratio and profit margin on sales.
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