A firm has sales of $1,090, net income of $182, net fixed assets of $478, and cu
ID: 2672289 • Letter: A
Question
A firm has sales of $1,090, net income of $182, net fixed assets of $478, and current assets of $270. The firm has $94 in inventory. What is the common-size statement value of inventory?
52.5 percent
34.8 percent
8.6 percent
19.7 percent
12.6 percent
A firm has total assets of $4,430 and net fixed assets of $1,350. The average daily operating costs are $156. What is the value of the interval measure?
33.56 days
28.40 days
19.74 days
8.65 days
39.49 days
A firm has a debt-equity ratio of .37. What is the total debt ratio?
.41
.27
.59
1.70
1.37
A firm has total debt of $1,330 and a debt-equity ratio of .28. What is the value of the total assets?
$1,702
$3,734
$4,750
$2,800
$6,080
Al's Sport Store has sales of $2,710, costs of goods sold of $2,100, inventory of $545, and accounts receivable of $446. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?
133.3 days
94.7 days
93.4 days
73.4 days
148.7 days
The Purple Martin has annual sales of $4,700, total debt of $1,230, total equity of $2,400, and a profit margin of 6 percent. What is the return on assets?
6.00 percent
11.75 percent
7.77 percent
22.93 percent
10.09 percent
52.5 percent
34.8 percent
8.6 percent
19.7 percent
12.6 percent
Explanation / Answer
1.Common Size Statement Value Of Inventory=(Inventory/ total current assets)*100=(94/270)*100=34.8% 2.Interval measure= Quick assets / operating expenses= 4430-1350/156=19.74 Days 3. total debt ratio=debt/debt=equity=37/(37+100)=.27 4.Step1: Debt equity ratio= total debts/shareholders fund=.28=1330/sharehoder fund= Shareholder fund=4750 Step2:total assests= Shareholder fund+Total Debt= 4750+1330= 6080 5. 93.4 days 6.Step1= profit margin=profit/total sales= 6%=P/4700=P=282 Step2=return on assets= (P/total assets)*100=282/(2400+1230)=7.77%
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