FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Calculating the
Hannah Company has current assets equal to $3,800,000. Of these, $1,200,000 is cash, $1,800,000 is
Required:
Note: Round answers to two decimal places.
1. Calculate the current ratio.
2. Calculate the quick ratio (acid-test ratio).
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- The Moraine Company has net income of $167,850. There are currently 32.65 days' sales in receivables. Total assets are $856,000, total receivables are $148,100, and the debt-equity ratio is .65. a. What is the company's profit margin? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the company's total asset turnover? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the company's ROE? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Profit margin b. Total asset turnover c. ROE % times %arrow_forwardGiven the following information pulled from a firm's financial statements, what is their Asset Turnover ratio? (round to the nearest two decimal places; 1.037 = 1.04) Total Liabilities Sales Revenue Net Operating Income 5,813,082 10,279,452 5,891,671 Current Assets 2,648,145 Total Stockholder Equity Current Liabilities 1,879,832 5,068,098arrow_forwardSDJ, Incorporated, has net working capital of $3,490, current liabilities of $4,950, and inventory of $4,990. a. What is the current ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the quick ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forward
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