Finance

In the review of the financial statements for the HUD Company, you found that the firm had total liabilities of $5,789,987. It also had total assets of $10,000,000. The current price of the stock is $89.78 per share. There were 123,456 shares of common stock outstanding. What is the Price to Book Value ratio for the firm?

(10,000,000-5,789,987) /123,456=34 89.78/34 = 2.63

You have been given a comparative balance sheet for 2018 and 2017 and the Income Statement for 2018. Comparative Balance Sheet 2017 2018 2018 Current Assets 2,205 2,429 Sales. $4,507 Net fixed assets 7,344 7,650 Cost of Goods Sold. $2,633 Total Assets 9,549 10,079 Gross Profit. $1,874 Depreciation $952 Current Liabilities 1,003 1,255 Earnings before Interest and Taxes (EBIT) $922 Long Term Debt 3,106 2,085 Interest Paid $196 Total Liabilities 4,109 3,340 Earnings before Taxes (EBT) $726 Total Equity 5,440 6,739 Taxes (21%) $152 Total Liabilities and Equity 9,549 10,079 Net Income $574 Dividends Paid $352 Addition to Retained Earnings $222 You will need to calculate both the beginning and ending net working capital (NWC). After this is done, calculate the Change in Net Working Capital.

-28 https://www.chegg.com/homework-help/questions-and-answers/21-cash-flow-mara-corporation-problem-give-practice-working-financial-statements-figuring--q39796761

After reviewing teh dividends paid, the change in total equity and the the addition to Retained Earnings, Calculate the Cash Flow to Stockholders (CFS).

-725

SDJ, Inc., has net working capital of $3,150, current liabilities of $4,200, and inventory of $3,880. a.What is the current ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)b.What is the quick ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

1. Current Ratio = Current Assets / Current LiabilitiesCurrent Assets = net working capital + Current Liabilities = 3,150 + 4,200 = $7,350Current Ratio = 7,350 / 4,200 = 1.75:1 2. Quick Ratio = Quick Assets / Current LiabilitiesQuick Assets = Current Assets - Inventory = 7,350 - 3,880 = $3,470Quick Ratio = 3,470 / 4,200 = 0.83:1

Refer to the income statement and balance sheet. Focus on the Long-term borrowing and the interest paid in 2018, What is the Cash Flow to Creditors?

1217

In looking at the ABC Company, you find that they reported net income of $456,897 They had incurred cost of goods sold in the amount of $102,954 There were cash dividends paid in the amount of $235,678 The common shares outstanding at the time were 100,000 The addition to Retained Earnings were:

456,897-235,678 = 221,219

The BBC Corporation has total assets of 2,802,443. It also carries current assets fo 1,000,000. There are current liabilities of 678,987 and long term debt of 123,456. There is total stockholders' equity of 2,000,000. What is the Debt-Equity Ratio?

678897+123,456/2,000,000 = 40.12%

You have been given a comparative balance sheet for 2018 and 2017 and the Income Statement for 2018. Comparative Balance Sheet 2017 2018 2018 Current Assets 2,205 2,429 Sales. $4,507 Net fixed assets 7,344 7,650 Cost of Goods Sold. $2,633 Total Assets 9,549 10,079 Gross Profit. $1,874 Depreciation $952 Current Liabilities 1,003 1,255 Earnings before Interest and Taxes (EBIT) $922 Long Term Debt 3,106 2,085 Interest Paid $196 Total Liabilities 4,109 3,340 Earnings before Taxes (EBT) $726 Total Equity 5,440 6,739 Taxes (21%) $152 Total Liabilities and Equity 9,549 10,079 Net Income $574 Dividends Paid $352 Addition to Retained Earnings $222 Based upon the given income statement, What is the Operating Cash Flow (OCF) in 2018?

726+922-152 = 1722 https://www.chegg.com/homework-help/questions-and-answers/21-cash-flow-mara-corporation-problem-give-practice-working-financial-statements-figuring--q39796761

A firm supplies you with the following financial data: cash $45,673 accounts receivable $87,654 capital investments $45,689 inventory $98,765 patents $3,456 accounts payable $101,987 short term deb $56,843 long-term note payable $155,432 Determine the Net working Capital for the firm.

73,262

You have been given a comparative balance sheet for 2018 and 2017 and the Income Statement for 2018. Comparative Balance Sheet 2017 2018 2018 Current Assets 2,205 2,429 Sales. $4,507 Net fixed assets 7,344 7,650 Cost of Goods Sold. $2,633 Total Assets 9,549 10,079 Gross Profit. $1,874 Depreciation $952 Current Liabilities 1,003 1,255 Earnings before Interest and Taxes (EBIT) $922 Long Term Debt 3,106 2,085 Interest Paid $196 Total Liabilities 4,109 3,340 Earnings before Taxes (EBT) $726 Total Equity 5,440 6,739 Taxes (21%) $152 Total Liabilities and Equity 9,549 10,079 Net Income $574 Dividends Paid $352 Addition to Retained Earnings $222 Find the Net Capital Spending (NCS) for the year by looking at the change in Fixed Assets. Make sure you remember to account for depreciation. What is the net capital spending in 2018?

7650-7344+922 = 1258 https://www.chegg.com/homework-help/questions-and-answers/21-cash-flow-mara-corporation-problem-give-practice-working-financial-statements-figuring--q39796761

A firm has current assets of $200 It has net fixed assets of $600 There is short term debt of $80 There is long term debt of$300 What is the Total Shareholders' Equity amount?

800-380=420

What is the Balance Sheet identity or equation?

Assets = Liabilities + Equity

How do you calculate the average tax rate?

Average Tax Rate = Total Taxes Paid divided by Total Taxable Income

The King Corporation has ending inventory of $463,000, and cost of goods sold for the year just ended was $4,329,050. a.What is the inventory turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)b.What is the days' sales in inventory? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)c.How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Cost of Goods sold/Average Inventory =4,329,050./(463,000) =9.35 What is the days' sales in inventory? =365/inventory turnover(9.35) =39.04 Days How long on average did a unit of inventory sit on the shelf before it was sold? On average, a unit of inventory sat on the shelf 39.04 days before it was sold.

Highly Suspect Corp. has current liabilities of $413,000, a quick ratio of 1.80, inventory turnover of 4.40, and a current ratio of 4.00. What is the cost of goods sold for the company?

Current ratio = 4.00 = CA / CL Current ratio = 4.00 = CA / $413,000CA = $1,652,000 Using the quick ratio, we solve for inventory: Quick ratio = 1.80 = (CA - Inventory) / CL Quick ratio = 1.80 = ($1,652,000 - Inventory) / $413,000Inventory = CA - (Quick ratio × CL)Inventory = $1,652,000 - (1.80 × $413,000)Inventory = $908,600 Inventory turnover = 4.40 = COGS / Inventory Inventory turnover = 4.40 = COGS / $908,600COGS = $3,997,840

The accounting income statement equation is

Income = Revenue - Expenses

Which one of the following best states the primary goal of financial management?

Maximize the current value per share

DTO, Inc., has sales of $23 million, total assets of $20.5 million, and total debt of $7.9 million. Assume the profit margin is 12 percent. a.What is the company's net income? (Do not round intermediate calculations. Enter your answer in dollars not in millions, e.g., 1,234,567.)b.What is the company's ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)c.What is the company's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Part a answer: Net income = Sales*profit margin = 23000000 *12% = 2760000 Part b answer: Return on asset= Net income/ Total assets *100 Return on asset=2.76/20.50*100 = 13.46% Part c answer: Return on equity = Net income/ Total equity *100 Total equity = total asset - total debt = 20.50-7.90 = 12.60 Return on equity = 2.76/12.60*100 = 21.90%

A company has net income of $186,000, a profit margin of 8.9 percent, and an accounts receivable balance of $125,370. Assuming 75 percent of sales are on credit, what is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Profit =Profit % * Sales 186,000=8.9 *X X=20,89,888 Sales=20,89,888 75 % are credit sales =15,67,416 Accounts receivable turover ratio=Net credit sales/Average account receivable=15,67,416/125,370=12.50 Company's days' sales in receivable or Average collection period=365/Account receivable turover ratio=365/12.50=29 days

Heritage, Inc., had a cost of goods sold of $45,721. At the end of the year, the accounts payable balance was $8,673. How long on average did it take the company to pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The formula of creditor Turnover ratio: =(Cost of Goods Sold/ Average accounts payable) =($45,721/$8673) = 5.27 times in a year To convert into 365 days = 365/5.27 = 69.24 dyas Conclusion: the company needs to take average time for pay off its credittors is 69 days

Operating Cash Flow is equal to the earnings before interest and taxes plus annual depreciation less corporate taxes paid.

What are the three components of Operating Cash Flow (OCF)?

Twist Corp. has a current accounts receivable balance of $336,500. Credit sales for the year just ended were $4,515,830. a.What is the company's receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)b.What is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)c.How long did it take on average for credit customers to pay off their accounts during the past year? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

a. Credit sale = $4,515,830 Account receivables = $336,500 Receivables turnover ratio = ($4,515,830 / $336,500) = 13.42 Receivables turnover ratio is 13.42. b. company's days' sales in receivables = 365 / Receivables turnover ratio = 365 / 13.42 = 27.20 days company's days' sales in receivables is 27.20 days. c. Average collection period is same as company's days' sales in receivables. So average collection period is 27.20 days.

Given the following financial data, determine the after-tax income for the firm. sales $1,609 cost of goods sold $850 depreciation $75 interest paid $80 corporate tax rate. 22.00% What is the after-tax income for the firm?

add all and minus out tax rate amount = 471

Nike had a great year in that it's credit sales reached a figure of $45,345,678. Their cash remained a robust $15,000,000. The credit sales were associated with a net accounts receivable of $3,778,807 This was out of 365 day year. What is the accounts receivable turnover rate during the year?

credit sales/AR = 12

The ABC Company has the following financial data: Cash. $4567 Accounts Receivalbe $7890 Inventory. $2345 Fixed Asset $1000 Accounts payable. $6000 Long Term Debt. $2000 What is the Current Ratio for the firm?

current assets/current lib cash+AR+invt/AP = 2.467

DTO, Inc., has sales of $32 million, total assets of $21 million, and total debt of $7 million.

https://www.chegg.com/homework-help/questions-and-answers/dto-inc-sales-167-million-total-assets-129-million-total-debt-57-million-assume-profit-mar-q33720267

Makers Corp. had additions to retained earnings for the year just ended of $318,000. The firm paid out $192,000 in cash dividends, and it has ending total equity of $4.97 million. The company currently has 150,000 shares of common stock outstanding. a. What are earnings per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b.What are dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)c.What is the book value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)d.If the stock currently sells for $76 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)e.What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)f.If the company had sales of $4.89 million, what is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

https://www.chegg.com/homework-help/questions-and-answers/makers-corp-additions-retained-earnings-year-ended-318-000-firm-paid-192-000-cash-dividend-q12211841

In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $6 to go buy $100 worth of groceries, then your child makes twice as much on the trip as we do." You've collected the following information from the grocery chain's financial statements: ($ in millions) Sales$760.0 Net income 22.8 Total assets 390.0 Total debt 260.0 a.What is the profit margin for the child as a percentage of what they spend and the profit margin for the store? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)b.What is the store's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

https://www.chegg.com/homework-help/questions-and-answers/response-complaints-high-prices-grocery-chain-runs-following-advertising-campaign-pay-chil-q25461656

The DEF Company had a taxable income of $987,654 There was a tax rate of 30.0% The number of common shares outstanding were 325,000 Determine the earnings per share (EPS) for the firm.

net income: 987,654*(1-.30) = 691,3582.13 691,3582.13/325,000 = 2.13

Addidas had sales of $32,000,000 Cost of Goods Sold of $12,000,000 Selling General Administrative Expenses of $2,000,000 Depreciation Expense of $1,000,000 Interest Expense of $800,000 What is the Operating Profit Margin for the firm?

op profit/net sales = 53.13%