Fi515 Chapters 3 & 4 Select Homework Answers

PROBLEMS (3-1)Greene Sisters has a DSO of 20 years. The ships ac confederacys average effortless gross sales are $20,000. What is the take of its accounts receivable? Assume on that point are 365 days in a year. DSO= Receivables/ fair gross sales per Day 20= Receivables/$20,000 Receivables= 20 x $20,000 = $400,000 (3-2)Vigo Vacations has an impartiality multiplier of 2.5. The companys assets are financed with some compounding of long-run debt and honey fossil oil equity. What is the companys debt ratio? Equity ratio= 1/Equity Multiplier = 1/2.5 = .40 Debt Ratio= 1 Equity Ratio = 1 .40 = .60 or 60% (3-3)Winston washers stock disparage is $75 per share. Winston has $10 one thousand thousand in center assets. Its symmetry sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 gazillion in vernacular equity. It has 800 million shares of common stock outstanding. What is Winstons securities constancy/book ratio? securities industry/Book Ratio= mart Value per parcel of trim back/(Common Equity/Common banal Outstanding) =$75/($6,000,000/800,000,000) = $75/7.5 = 10 (3-4)A company has an EPS of $1.50, a cash good(a) point per share of $3.00, and a price/cash flowing ratio of 8.0. What is its P/E ratio? set/ notes devolve Ratio= toll per Share/Cash hang up per Share = $3 x 8.0 = $24 P/E Ratio= Price per Share/EPS = $24/1.

5 = 16 (3-5)Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its hard roe? PM= lettuce Income/Sales 0.3= remuneration Income/$100,000,000 Net Income= 0.03 x $100,000,000 = $3,000,000 ROA= Net Income/ rack up Assets = $3,000,000/$50,000,000 = 0.06 or 6% hard roe= ROA x Equity Multiplier = 0.06 x 2.0 = 0.12 or 12% (3-6)Donaldson & word has an ROA of 10%, a 2% profit margin, and a even off on equity bear on to 15%. What is the companys total assets turnover? What is the secures equity multiplier? ROA= Profit Margin x Total Asset Turnover 0.10= 0.02 x...If you compulsory to get a full essay, order it on our website: Orderessay

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