Corporate Finance: A Focused Approach (mindtap Course List)
7th Edition
ISBN: 9781337909747
Author: Michael C. Ehrhardt, Eugene F. Brigham
Publisher: South-Western College Pub
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Chapter 3, Problem 12P
The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days sales outstanding of 36.5 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich’s annual sales?
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At the end of last year, Bralnerd & Co. had a quick ratlo of 1.4, a current ratio of 3.0, a days sales
outstanding (DSO) of 36.5 days (based on a 365-day year), total current assets of $810,000 and cash
of $120,000. Its current assets consist of cash, accounts recelvable, and Inventory. Assume that the
level of current assets and current labilities were stable throughout the year.
Please calculate last year amounts for Bralnerd's'
1. Current llabilitles.
2. Inventory
3. Accounts receivable.
4. Sales
5. Brainerd plans to borrow short-term funds from a bank (notes payable) and use these funds to
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requiring Brainerd's current ratio not to fall below 2.5. How much short-term bank debt (I.e.,
Notes Payable or NP) can Brained borrow without pushing its current ratio below 2.5?
(Note: For each question, please show detalled explanations as to how you proceed to your answer
along with detailed…
Chapter 3 Solutions
Corporate Finance: A Focused Approach (mindtap Course List)
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Over the past year, M. D. Ryngaert Co. has...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4P
Ch. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Ace Industries has current assets equal to 3...Ch. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Complete the balance sheet and sales information...Ch. 3 - The Kretovich Company had a quick ratio of 1.4, a...Ch. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - Prob. 8MCCh. 3 - Prob. 9MCCh. 3 - Prob. 10MC
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