DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2) Debt Ratio: Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Debt ratio = 1 – (1 / Equity multiplier) Debt ratio = 1 – (1/2.5) = 1 - .40 = .60 Debt ratio = 60% (3-3) Market/Book Ratio: Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.
Return on common stockholders’ equity $29,946,992 - (2430872-15801332) / 200,000 = 82.9% * Solvency ratios 9. Debt to total assets $7,628,563 / 34,825,498 = 22% 10. Times interest earned 3,272,314 / 121,533 = 26.9 Riordan Manufacturing, Inc. Horizontal Analysis for the Balance Sheet Increase or (Decrease) 2010($) 2009($) Amount % Assets Cash $2,807,029 $1,511,253 $1,295,776* 46.1%* Account Receivables $2,695,342 $2,644,307 $51,035 1.9% Current Portion of Note Receivable $102,976 $117,475 ($14,499) (14.1%) Inventory $8,517,203 $7,123,790 $1,393,413 16.4% Deferred Income Taxes – net $0 $0 $0 0% Pre-Paid Expenses and other Items $402,240 $458,875 ($56,635) (14.1%) Total Current Assets $14,524,790 $11,855,700 $2,669,090 18.4% Liabilities Current Liabilities Current Portion of Long-Term Debt $474,032 $484,894 ($10,862) (2.3%) Accounts Payable $1,391,385 $1,636,923 ($245,538) (17.6%) Accrued
Question : (TCO 7) An understanding of life-cycle costs can lead to 5. Question : (TCO 7) Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number
How much is National Income? 8. Given: wages, salaries, and fringe benefits = $6.1 trillion; interest = $400 billion; profits = $500; depreciation = $550 billion; rent = $150 billion; and indirect business taxes = $250 billion. Find National Income, NNP, and GDP. 9.
Debt to assets ratio $1,202,134 (total debt) / $1,404,726 (total assets) = 87.4% B.) ROA is a measure of profitability or effectiveness of resource usage calculated by expressing a company’s net income as a percentage of total assets. As for Sepracor, its ROA is 4.5%. This means that Sepracor created 4.5 cents of earnings from each dollar of assets. The ROE for Sepracor is 33.07%, which means that 33.07 cents of assets are created for each dollar that was originally invested.
= $62,200 C. What is Anderson Company’s total owners equity? = $88,200 D. What is Anderson Company’s debt to equity ratio? = 0.70 to $1 Question 5: Farwell Company has the following information from its most fiscal year. Use the relevant information to determine the net income (loss) for the period. A.
To forecast 2010 sales based on 2009 sales, Equation 1 must be used: St = $500,000 + $1.10St–1 S2010 = $500,000 + $1.10($1,500,000) = $2,150,000 3. Equation 2 requires a forecast of gross domestic product. Equation 3 uses the actual gross domestic product for the past year and, therefore, is observable. 4. Advantages: Using the highest R2, the lowest
to Expected Realizable Value 60,000 EXERCISE 19-1 (15–20 minutes) (a) Pretax financial income for 2012 $400,000 Temporary difference resulting in future taxable amounts in 2013 (55,000) in 2014 (60,000) in 2015 (75,000) Taxable income for 2012 $210,000 Taxable income for 2012 $210,000 Enacted tax rate 30% Income taxes payable for 2012 $ 63,000 (b) | | Future Years | | | | 2013 | 2014 | 2015 | Total | | Future taxable (deductible) amounts | $55,000 | $60,000 | $75,000 | $190,000 | | Tax rate | X 30% | X 30% | X 30% | | | Deferred tax liability (asset) | $16,500 | $18,000 | $22,500 | $ 57,000 | Deferred tax liability at the end of 2012 $ 57,000 Deferred tax liability at the beginning of 2012 0 Deferred tax expense for 2012 (increase in deferred tax liability) 57,000 Current tax expense for 2012 (Income taxes payable) 63,000 Income tax expense for 2012 $120,000 Income Tax Expense 120,000 Income Taxes Payable 63,000 Deferred Tax Liability 57,000 (c) Income before income taxes $400,000 Income tax
Liquidity Ratio Calculations: Current Ratio = Current Assets / Current Liabilities $147,800 / $90,283 = $1.637:1 Acid-Test Ratio = (Cash + Short-Term Investments + Net Receivables) / Current Liabilities $89,664 + $0 + $51,869 / $90,283 = $1.567:1 Receivables Turnover = Net Credit Sales / Average Receivables ($1,109,295 - $89,664) / [($51,869 + $81,557) / 2] = 15.283 *Average Collection Period = 365 / 15.283 = 23.883 Days When evaluating Huffman Trucking’s ability to pay off short-term debt and maturing obligations, it’s imperative to analyze the company’s liquidity. Utilizing the current ratio to analyze liquidity, which compares all current assets to current liabilities,
Problem 13-23A Financial statements for Pocca Company follow. (See Excel) Use the financial statements for Pocca Company from Problem 13-22A to calculate the following ratios for 2006 and 2005. Working capital Current ratio Quick ratio Accounts receivable turnover (beginning receivables at January 1, 2005, were $47,000.) Average number of days to collect accounts receivable Inventory turnover (beginning inventory at January 1, 2005, was $140,000.) Average number of days to sell inventory Debt to assets ratio Debt to equity ratio Times interest earned Plant assets to long-term debt Net margin Asset turnover Return on investment Return on equity Earnings per share Book value per share of common stock Price-earnings ratio