Of Peterson Enterprises’ $1.4 billion in assets, $150 million of those assets are in cash or can be readily converted to cash. Other companies in Peterson Enterprises' industry have cash as a percentage of total assets of around 8%. This is an example of Group of answer choices high liquidity. low liquidity. high solvency. low profitability high activity low solvency.
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- a. Explain Cash Flow Statement, what are different cash flow classifications, define and differentiate with examples. 3 b. XYZ, Inc., has Total Assets equal to your $ ID, total assets turnover is 1.5, and D/E ratio of 1.5. If its Return to equity ratio is 20 percent, what is its net income? 7Which of the following is a section of a cash flow statement? Select one: a.Fixed costs outflows b.Cash basis accounting systems c.Wage taxes d.EIN Question 22 Question text If you invest $1,525,000 in a business and earn a return of $775,000, what is your ROI? Select one: a.42% b.45% c.51% d.1.96% Question 23 Question text If Jacques invests $20,000 at 10% interest for 3 years, what will the future value of the money be? Select one: a.$26,620.00 b.$6620.00 c.$20,606.02 d.$26,000.00 Question 24 Question text Two common risks to cash flow stability are ________ and ________. Select one: a.credit squeeze; burn rate b.surplus inventory; pilferage c.burn rate; pilferage d.surplus inventory; credit squeeze Question 25 Question text A suggested allowance for contingencies and emergencies at start-up is _____ of estimated start-up costs. Select one: a.5 percent b.10 percent c.25 percent d.40 percentPlease answer all. From a company we get the following:Capital employed 20,000,000 dollarDebt / equity ratio = 3Total income 40,000,000 dollarTotal profit 4,000,000 dollarInterest costs 1,500,000 dollarNet profit 2,500,000 dollara. Calculate the return on capital employed (Rsyss)b. Calculate the return on equity (Re)c. Show the relationship between profit margin and capital turnover rate and return on capital employedd. Demonstrate the relationship between the return on equity (Re) and the return on employed capital (Rsyss) with the help of the financial exchange!
- A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account receivables. The firm has long term assets of $500. The firm has accounts payables of $200. All other current liabilities total $400. The firm had sales of $10000, EBIT of $5000, interest expenses of $2000 and net income of $800. Compute the following ratios: Current ratio DSO TIE profit margin Total asset turnoverconsider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries ( we usually call this SG&A for selling, general and administrative) of 1750.0million, depreciation of 2250.0 million, and interest expense of 2300 million. tax rate =21%. a. generate an income statement and show net income b. what is the company's operating cash flow? c. if there are 775.2 million shares outstanding, what is the EPS? d. if the company has a payout ratio of 20%, what is the dividends per share?Problem 1: A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account receivables. The firm has long term assets of $500. The firm has accounts payables of $200. All other current liabilities total $400. The firm had sales of $10000, EBIT of $5000, interest expenses of $2000 and net income of $800. Compute the following ratios: Current ratio DSO TIE profit margin Total asset turnover Problem 2: A firm has current liabilities of $500. Account receivables are $300 and inventory is $400. All other current assets equal $800. Long term assets are $5000, long term liabities are $2500, sales is $8000, EBIT is $2000, interest expenses are $600 and net income is $100. Compute the following ratios: Current ratio Debt ratio TIE ROA DSO Current ratio = total current assets/total current liabilities Days Sales Outstanding (DSO) = (accounts receivable*365)/sales Times Interest Earned (TIE) ratio = EBIT/interest expense Total asset turnover = sales/total…
- Current assets and current liabilities for Brayden Company are as follows: 20Υ9 20Y8 Current assets $498,600 $532,400 Current liabilities 269,300 301,500 What conclusions can be drawn regarding Brayden's ability to meet its financial obligations? Oa. The current ratio has improved, and the working capital has increased. Ob. The current ratio has worsened, and the working capital has decreased. Oc. The current ratio has improved, while the working capital has decreased. Qd. The current ratio has worsened, but the working capital has increased.A. What is the liquidity position of the company? Support your answer with relevantratios B. What is the Cash Conversion Cycle for the company? Assume a 360-day year. C. Explain what is meant when a business activity has high operating gearing, andwhat are the implications for a business with high operating gearing?1. The person in charge of the finances of the company MGT, S.A. wants to know the company's situation concerning the industrial sector to which it belongs. For this, it has the following information regarding the industry: General liquidity ratio is 1.55; the acid test is 1.20, and the ratio between the available and the current liabilities is 0.95. The debt ratio stands at 1.25. The margin on sales is 21%. The investment rotation is 1.45 times. Economic profitability is around 23%, and financial profitability is 29% The data referred to the company (in thousands of €) are the following: Assets Liability and Net Equity Non-current asset (net) 170 Equity 125 Stocks of finished products 45 Reservations 25 Clients 65 External Resources 105 Banks 70 Loans 65 Supplier 30 Total Assets 350 Total Net Equity 350 In addition, it is known that: Sales are € 250,000 and its direct cost of € 105,000. Amortization of…
- Consider the following information (in $million) to answer the question: 2018 Caulfield Clayton Bank Bank ($ million) ($ million) Revenue 12.5 13.7 Net income 4.9 5.3 Assets 445 535 Equity 55.5 57 In 2018, which bank was more effective in terms of cost controls? Select one: O a. Caulfield Bank O b. Clayton Bank c. Both banks were equally cost-effective. O d. Cannot be determined from available information. Next page age 11,655 APR 13 MacBooBased on the key indicators tabulated in the table below and the readings and resources provided for this unit, analyze Firm A and Firm B thoroughly. Which firm in your opinion is more attractive, and why? Firm A Firm B P/E ratio 3 3 EPS growth rate +10 -20 Debt-to-equity ratio 0.30 0.70 Sales ($ million) 100 100 Cash on the balance sheet ($ million) 20 21) Firm A has profit margin of 7.5%, sales revenue of $1 million, dividend payout ratio of 60%, debt-equity ratio of 2, and total assets of $3 million. Calculate the internal growth rate for Firm A. 2)Calculate the net impact on cash given the following information: decrease in accounts receivable= $30; decrease in inventory= $45; net fixed asset Disposals= $75; decrease in accounts payable= $27; increase in notes payable= $30; increase in long-term debt= $105; decrease in retained earnings= $18; decrease in common stock= $600.