Problems (p.112) (3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Ans: DSO (Days Sales Outstanding) = Accounts Receivables/Average Sales per day Accounts Receivables = 20 * 20000 = $400,000 (3-2) Debt Ratio Vigo Vacations has an equity multiplier of 2.5.
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.
Calculate the following financial ratios. TIP: If you don't remember how to calculate financial ratios, review the Calculating Financial Ratio pages from Section 9, Lesson 2 of this course. a. A company makes a net profit before tax of $12,000 and has $20,000 in total equity. Calculate the company's return on equity as a percentage.
Home Depot reported its AS&RE liability in fiscal year 2010 ending at $1,263,000 dollars and OAE liability ending fiscal year reported $1,589,000. The subsequent year AS&RE fiscal year ending reported $1,290,000 and the OAE listed it fiscal year endings at $$1,515,000. The AS&RE liability increased by $27,000 from 2010 to 2011 this is a direct reflection of Home Depot’s employment of over 300,000 associates worldwide. (Home Depot, 2011). Total Liabilities Home Depot reported its total liabilities for the ending fiscal year 2010 at $21,484,000, and the following year 2011 reported a fiscal year ending total of $21,236,000.
4. Which of the following includes operating income in the ratio’s numerator? A. Times interest earned B. Debt-to-equity ratio C. Acid-test ratio D. Gross margin percentage Use the following information for the next 2 questions. Tedi Co. had net sales of $1,000,000; inventory of $230,000; cost of goods sold of $700,000; average accounts receivable of $25,000; and average total assets of $750,000.
Chapter 1 End-of-Chapter Project SUBMIT IN WORD DOC or PDF FORMAT VIA THE CANVAS ASSIGNMENT SUBMISSION FUNCTION CLEARLY PRINT YOUR NAME AND ASSIGNMENT NAME AT THE TOP OF EACH PAGE At the beginning of last month, Harley Franks started a barbershop, Harley’s Cutters. The following events occurred during the month. 1. Harley invested $30,000 cash in the company. 2.
| | | | | Score: | 0/10 | | 2. Chapter 10 - The Cost of Capital Question MC #65 Bosio Inc.'s perpetual preferred stock sells for $75.00 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?
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 of units produced. Selling price is computed by adding a 20% markup to full cost. How much should the selling price be per unit for 300,000 units? 6.
What is the amount of its credit carryover and the last year to which the carryover could be used? Answer: $7,750 carried over to 2004 or 2025 4. Margolin Corporation has a regular taxable income of $120,000. It has a positive adjustment of $90,000, preference items of $50,000 and negative adjustments of $40,000. What is its alternative minimum tax?