Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
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Textbook Question
Chapter 3, Problem 3MC
Calculate the projected inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Computron’s utilization of assets stack up against that of other firms in its industry?
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Show the calculation of the following activity ratios: (1) the receivables turnover ratio, (2) the inventory turnover ratio, and (3) the asset turnover ratio. What information about a company do these ratios offer?
MAKE A BASIS AND DISCUSSION ON THE EFFICIENCY RATIO OF NESTLE (ASSET TURNOVER, INVENTORY TURNOVER, RECEIVABLES TURNOVER, AND AVERAGE COLLECTION PERIOD (DAYS).
Which of the following is a measure of profitability?
Select one:
a. Inventory turnover
b. Return on assets (ROA)
c. Quick (acid-test) ratio
d. Net sales
Chapter 3 Solutions
Financial Management: Theory & Practice
Ch. 3 - Define each of the following terms:
Liquidity...Ch. 3 - Financial ratio analysis is conducted by managers,...Ch. 3 - Over the past year, M. D. Ryngaert Co. has...Ch. 3 - Profit margins and turnover ratios vary from one...Ch. 3 - How might (a) seasonal factors and (b) different...Ch. 3 - Why is it sometimes misleading to compare a...Ch. 3 - Greene Sisters has a DSO of 20 days. The company’s...Ch. 3 - Vigo Vacations has $200 million in total assets,...Ch. 3 - Winston Watchs stock price is 75 per share....Ch. 3 - Reno Revolvers has an EPS of $1.50, a free cash...
Ch. 3 - Needham Pharmaceuticals has a profit margin of 3%...Ch. 3 - Gardial Son has an ROA of 12%, a 5% profit...Ch. 3 - Ace Industries has current assets equal to 3...Ch. 3 - Assume you are given the following relationships...Ch. 3 - Prob. 9PCh. 3 - The Morrit Corporation has $600,000 of debt...Ch. 3 - Complete the balance sheet and sales information...Ch. 3 - The Kretovich Company had a quick ratio of 1.4, a...Ch. 3 - Data for Lozano Chip Company and its industry...Ch. 3 - The Jimenez Corporation’s forecasted 2020...Ch. 3 - Why are ratios useful? What three groups use ratio...Ch. 3 - Calculate the projected profit margin, operating...Ch. 3 - Calculate the projected inventory turnover, days...Ch. 3 - Prob. 4MCCh. 3 - Calculate the projected debt ratio, debt-to-equity...Ch. 3 - Calculate the projected price/earnings ratio and...Ch. 3 - Prob. 7MCCh. 3 - Use the extended DuPont equation to provide a...Ch. 3 - What are some potential problems and limitations...Ch. 3 - What are some qualitative factors that analysts...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- What insights can be gained from inventory ratio analysis, such as inventory turnover ratio and number of days sales in inventory ratio?arrow_forwardWhat financial metric measures a company's ability to cover its short-term obligations with its most liquid assets and is calculated by excluding inventory from the current assets? A. Quick ratio B. Current ratio C. Inventory turnover ratio D. Return on assets ratioarrow_forwardWhat is Return on Assets? How do you calculate Inventory Turnover and The Number of Days' Sales in Inventory?arrow_forward
- Which ratio can provide an indication of the salability of the company's products? Question 20 options: A) Current ratio B) Account receivable turnover C) Gross profit margin D) Inventory turnoverarrow_forwardWhich of the following is a measure of profitability?a. Quick (acid-test) ratiob. Net salesc. Inventory turnoverd. Return on assets (ROA)arrow_forwardDividing net sales on account by the average amount of net accounts receivable is the calculation for the a.merchandise inventory turnover. b.working capital turnover. c.plant and equipment turnover. d.accounts receivable turnover.arrow_forward
- In generating a pro forma balance sheet, on what is the percentage of salesmethod based?arrow_forwardArgues how asset and inventory turnover analysis can help improve a firm's operational performance.arrow_forwardWhich of the following assumptions is assumed in the percent of sales forecasting method? All balance sheet assets accounts are tied directly to sales. Accounts receivables and inventory are tied directly to sales. Preferred stock and long-term debt are tied directly to sales. Fixed assets, but not current assets, are tied directly to sales.arrow_forward
- Dividing cost of goods sold by the average of merchandise inventory is the calculation for the a.accounts receivable turnover. b.merchandise inventory turnover. c.working capital turnover. d.plant and equipment turnover.arrow_forwardWhat does the Total-Assets-Turnover Ratio measure?arrow_forwardWhat is the average inventory turnover for the firm?arrow_forward
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