Cash Fixed assets Sales Net Income Current Liabilities Current Ratio 100,000 283,500 1,000,000 50,000 105,500 3.00x DSO 40.55 days 12.00% ROE ABC Co. has no preferred stock, only common equity, current liabilities, and long-term debt. What is ABC Co. AR? 111.1 M 101 M

Atlanta Company $ 820,000 490,000 Atlanta Company Spokane Company Total liabilities Total equity Compute the debt-to-equity ratio for each of the above companies. Choose Numerator: 100 Atlanta Company Spokane Company Spokane Company $ 298,900 1,786,000 Debt to equity ratio / Choose Denominator: mation Which company appears to have a riskier financing structure? Prev 4 of 5 = Debt-to-equity ratio II MacBook Air Next >

1. A. the following data apply to Jacobs and Associates (millions of dollars): Cash and marketable securities $ 100.00 Net income%= $ 50.00 Fixed assets =$ 283.50 Sales =$1,000.00 Quick ratio =2.0 Current ratio= 3.0 DSO =40.55 days ROE =12% Jacobs has no preferred stock-only common equity, current liabilities, and long-term debt. Find Jacobs's A. Accounts receivable, B. Current liabilities, C. Current assets, D. Total assets, E. ROA, F. Common equity, and G. Long-term debt. 1B. in part A, you should have found Jacobs's accounts receivable = $111.1 million. If Jacobs could reduce its DSO from 40.55 days to 30.4 days while holding other things constant, how much cash would it generate? If this cash were used to buy back common stock (at book value), thus reducing the amount of common equity, how would this affect i. The ROE ii. The ROA iii. The ratio of total debt to total assets?

Hewlard Pocket's market value balance sheet is given. Assets Liabilities and Shareholders' Equity A. Original balance sheet Cash $ 150,000 Debt Other assets 950,000 Equity 1,100,000 Value of firm $1,100,000 Value of firm $1,100,000 Shares outstanding Price per share 100,000 $1,100,000 / 100,000 = $11 %D Pocket needs to hold on to $76,000 of cash for a future investment. Nevertheless, it decides to pay a cash dividend of $1.90 per share and to replace cash as needed with a new issue of shares. After the dividend is paid and the new stock is issued: a. What will be the price per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be the total value of the company? (Enter your answers in whole dollars, not in millions.) c. What will be the total value of the stock held by new investors? (Enter your answers in whole dollars, not in millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) d.…