Tulips Company has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts receivable balance? Assume that it uses a 365-day year.
Q: Q5. Shown below are selected financial data for Planet X, Inc. and Planet Y, Inc., at the end of the…
A: Since, you have specifically asked for part 3 and b so we will solve the same for you.
Q: Selzer Inc. sells all its merchandise on credit. It has a profit margin of 4 percent, days sales…
A: The return on equity(ROE) measures the financial performance of the company. It measures the…
Q: The company has a 10% interest bearing, promissory note of 50,000, payable after 5 years. Sales…
A: The financial leverage is the ratio that helps in measuring the dependency of the entity on debt…
Q: At the beginning of the year, long-term debt of a firm is $54,112. At the end of the year,…
A: Cash flow to creditors refers to movement of cash and cash equivalents i.e. liquid cash in and out…
Q: Q5. Shown below are selected financial data for Planet X, Inc. and Planet Y, Inc., at the end of the…
A: Planet X Current Assets = Cash + Accounts Receivable + Inventory Current Assets =…
Q: A company has current assets of $92,000 (of which $37,000 is inventory and prepaid items) and…
A: The liquidity ratio indicates the ability of the business entity to pay out its current debt. It…
Q: 1. During year t, Parrothead Enterprises raised £270 in new long-term debt. How much long-term debt…
A: 1. Net new borrowing =Non current liabilities for year t – Non currennt liabilities for year…
Q: how much would be the total assets
A: (Since you have posted multiple questions, we will solve the first question for you. For the…
Q: elated to financial proje 1) Projected sales are $6,006,000. 2) Cost of goods sold last year…
A: Under Judgmental approach of forecasting financial statements, the pro forma balance sheet uses…
Q: Q1) Omani Industrial Company has the following data which is extracting from its financial…
A: Given: Net profit margin =8%Sales =1500 thousand (OMR)Financial leverage multiplier =2.5 timesReturn…
Q: 3. Compute the Current ratio for year 1 and year 2, Quick ratio for year 1 and year 2, Debt to…
A: 1 Current ratio Current Assets/ Current Liabilities Year 1 62000/40000 1.55…
Q: Selzer Inc. sells all its merchandise on credit. It has a profit margin of 4 percent, days sales…
A: Return on equity refers to the earnings made over equity amount invested. Higher return on equity is…
Q: Stephens, Inc. (SI) reported net income of $120,000 for the fiscal year that just ended and expects…
A: The addition to retained earnings is calculated as forecasted net income multiplied by retention…
Q: Consider the following data for the Jamestown Company. Sales = $3,650,000 Total asset turnover =…
A: given, sales = $3650,000 total asset turn over = 1.6 x total asset turnover = salestotal asset1.6…
Q: Calculate the ratios for Adenta Ltd equivalent to the industry averages and as the Financial…
A: Number of Shareholders' = Share Capital / Per Share Price = GH¢ 3000,000/ GH¢ 0.25 = 12,000,000
Q: At the beginning of the year, Norwood Pass Industries had $240,000 in total assets and a…
A: The debt-to-asset ratio is calculated by dividing the total debts by the total assets. This ratio…
Q: Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse…
A: Return on assets indicates the firm's profitability on total assets. It can be calculated by…
Q: 1) Projected sales are $6,006,000. 2) Cost of goods sold last year includes $998,000 in fixed costs.…
A: Under Judgmental approach of forecasting financial statements, the pro forma balance sheet uses…
Q: Beckinsale, Inc., has a profit margin of 5.8 percent on sales of $16,000,000. If the firm has debt…
A: Calculation of Firm’s ROA:The firm’s ROA is 6.63%.Excel Spreadsheet:
Q: Problem 1. Last year Justine Corp. had sales of P315,000 and a net income of P17,832, and its…
A: Return On Equity (ROE) = Profit Margin × Sales Turnover × Equity Multiplier
Q: Peter's Motor Works has total assets of $689,400, long-term debt of $299,500, total equity of…
A: Given the following information: Total assets: $689,400 Long-term debt: $299,500 Total equity:…
Q: S Ltd. Has equity of Rs.6Lacs issued at par. The following additional information is provided: r . .…
A: Please find attachment below In step 2 balence sheet with working notes
Q: A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets…
A: Ratio analysis means where the various ratio can be found out with different name and meaning and…
Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…
A: Formula: Times interest ratio = Operating income / Interest expense
Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…
A: The ratio analysis helps to analyze the financial statements of the business. The times interest…
Q: Selzer Co. sells all its merchandise on credit. It has a profit margin of 4%, days sales outstanding…
A: PROFIT MARGIN 4% DAYS SALE OUTSTANDING 60 DAYS RECEIVABLE 150,000 TOTAL ASSETS 3 MILLION…
Q: Debt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.94 times at the end…
A: Debt to equity ratio = Debt / Equity = 1.94Debt = $ 10.60 million
Q: Assume the following information for both years: Net Profit Margin (NPM) was 4%. Interest on…
A: Calculation of Altman Z score for the year ended 2007 and 2008 is shown below: Hence, based on the…
Q: BestBatteries, Inc just published this Balance Sheet. All dollar amounts are in millions of dollars.…
A: Weighted average pre-tax cost of debt is the cost before the tax adjustment which is derived on the…
Q: Accounts payable $509,000 Notes payable $244,000 Current liabilities $753,000 Long-term debt…
A: Debt =long term debt +note payable Debt =244000+1246000=1490000 Debt =$1490000 Total assets…
Q: Practice 1. solve for the Efficiency of the Given Company aple Company Statement of Financial…
A: The question is related to Efficiency Ratio. The Efficiency ratio are also known as performance…
Q: Walter Mart has net assets of P3,358,000 after liabilities of P1,267,000 at the end of the year.…
A: Solution: Walter mart's equity at year end = Total assets - Total liabilities
Q: 3. ENN Corporation has interest expense of P16,000, sales of P600,000, a taxrate of 30%, and…
A: Dear You have asked 2 questions in one slot. So, I have solved 1st means Question no. 3 as per…
Q: (Financing decisions) Brussels Electronics, Inc, has total assets of $64 million and total debt of…
A: Brussels Electronic's debt ratio- = Total debt/ Total assets = $45/ $64 = 0.7031 or 70%
Q: The following financial data have been taken from Muscat Company: Account receivable $200,000 Bonds…
A: Given: Accounts receivable = $200,000 Cash = $100,000 Accounts payable = $80,000 Notes payable =…
Q: Cotuit Company has a current ratio of 3.2 and an acid-test ratio of 2.4. The company's current…
A: Given the following information: Current ratio: 3.2 Acid test ratio: 2.4 Current assets consist of…
Q: Balance sheet and income statement data indicate the following: Company A Company B $1,200,000…
A: The bond and the income data of two companies is given to us. Based on the data, we are required to…
Problem 1 (Day Sales Outstanding)
Tulips Company has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts receivable balance? Assume that it uses a 365-day year.
Problem 2 (Debt Ratio)
Jasmine Inc. has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its debt-to-assets ratio?
Problem 3 (Market/Book Ratio)
Alessandra Company has P10 billion in total assets. Its balance sheet shows Pl billion in current liabilities, P3 billion in long-term debt, and P6 billion in common equity. It has 800 million shares of common stock outstanding and stock price is P32 per share. What is Alessandra Company market/book ratio?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- Problem 1. Last year Justine Corp. had sales of P315,000 and a net income of P17,832, and its year-end assets were P210,000. Justine's total-debt-to-total-assets ratio was 42.5%. Based on the Du Pont equation, what was Justine's return on equity (ROE)?Use the financial ratios of company A and company B to answer the questions below. Company A Company B Yr t+1 Year t Yr t+1 Year t Current ratio 0.55 0.59 0.56 0.55 Accounts receivable turnover 6.22 6.25 5.06 4.87 Debt to total assets 40.5% 40% 67.8% 65.9% Times interest earned 8.80 30.6 5.97 6.33 Free cash flows (in millions) ($3,819) $3,173 $168 $550 Return on stockholders’equity 7.7% 7.7% 26.6% 23.3% Return on assets 4.3% 4.3% 8.9% 7.9% Profit margin…3. If net sales is P200,000 and the average accounts receivable is P50,000, what is the accounts receivable turnover ratio? * а. 4 b. 1/4 c. P150,000 d. P250,000 5. If total assets amounted to P800,000 and total liabilities amounted to P200,000, what is the debt to equity ratio? * а. 4 b. 0.3333 c. 0.25 d. 3 9. If the operating expenses of the company amounted to P50,000, gross sales amounted to P420,000 and sales discounts amounted to P20,000, how much is the operating expenses to sales ratio? * a. 0.125 b. 8 c. 0.119 d. 8.4
- Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.5 Return on assets (ROA) 4% Return on equity (ROE) 6% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.2 Retum on assets (ROA) 4% Return on equity (ROE) 5% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the firm can borrow at 5.5% BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other CA 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciations 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Pro-forma statement Pro Forma Forecasts Actual Projected Projected Projected Projected Projected 2021 2022 2023 2024 2025 2026 COGS/REVENUES SGA/SALES INVENTORIES/COGS OTHER CA/SALES AR/SALES AP/COGS SALES/FIXED ASSETS DEPR/ FIXED ASSETS EQUITY/INVESTED CAPITAL ST DEBT/INVESTED…
- The financial statements of Stone Limited for the most recent two years is shown below. Extract from statement of profit or loss for the year ended 30 April 2019 2018 £'000 £'000 224,000 195,000 (169,200) (136,500) 54,800 58,500 (32,700) (38,040) (10,900) (12,680) (1.900) 9,300 Revenue Cost of sales Gross profit Administrative costs Distribution cost Finance cost-loan note interest Statement of financial position as at 30 April. Assets Non-current assets Current assets: Inventory Trade receivables Cash balance Total assets Equity and liabilities Ordinary share capital Retained earnings £'000 2019 12,800 24,600 1,600 £'000 37,000 39,000 76,000 16,000 26,200 42,200 (1.380) 6,400 2018 £'000 £'000 28,600 9,800 21,600 2,400 33,800 62.400 16,000 18,600 34,600Motorola Credit Corporation's annual report: Net revenue (sales) Net earnings Total assets Total liabilities Total stockholders' equity a. Find the total debt to total assets ratio. Note: Round your answer to the nearest hundredth percent. Total debt to total assets Return on equity b. Find the return on equity ratio. Note: Round your answer to the nearest hundredth percent. (dollars in millions) $ 297 163 2,175 1,880 295 Asset turnover c. Find the asset turnover ratio. Note: Round your answer to the nearest cent. Profit margin % % % d. Find the profit margin ratio on net sales. Note: Round your answer to the nearest hundredth percent.If Inland uses its $400 cash balance to pay off $400 of its long-term debt, what will be its new current ratio?(a) 1.68 (b) 2.03(c) 1.35 (d) 3.12
- We are given the following information for the Pettit Corporation. Sales (credit) Cash Inventory Current liabilities Asset turnover Current ratio Debt-to-assets ratio Receivables turnover $ 2,880,000 188,000 890,000 811,000 1.35 times 2.30 times a. Accounts receivable b. Marketable securities c. Fixed assets d. Long-term debt 40 % 5 times Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Lienser Fraktala TAMARA TANT RISHI TRITATE FAST JET PARETSTRANS I nemal osted or annemangen MANENBER HAGPAINT MANSION LARPURCO Calculate the following balance sheet items. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)Suppose the Schoof Company has this book value balance sheet: Current assets Fixed assets Total assets Short-term debt Long-term debt Common equity Total capital $ $30,000,000 $ 70,000,000 $100,000,000 The notes payable are to banks, and the interest rate on this debt is 7%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 8%, and a 15-year maturity. The going rate of interest on new long-term debt, rd, is 10%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $60 per share. Calculate the firm's market value capital structure. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Current liabilities Notes payable Long-term debt Common stock (1…Current and Quick Ratios The Nelson Company has $1,187,500 in current assets and $475,000 in current liabilities. Its initial inventory level is $345,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.