14. A firm has AED 600 million in inventory, AED 1,200 million fixed assets, AED 250 million in accounts receivables, AED 150 million payable, notes payable AED 200 and AED 2,100 million in total assets. What is the quick ratio? in accounts
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- Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?Current Asset 120 000Cash 20 000Accounts Receivable 45 000Short-term investments 12 000Merchandise Inventory 42 000Current Liabilities 68 000 What is the company's current ratio?What is the company's quick ratio?what does the percentages mean in vertical analysis? Year 4 % of Sales Year 3 % of Sales Assets Current Assets Cash $ 40,000 6.67 $ 36,000 6.67 Marketable Securities 20000 3.33 6000 1.11 Accounts Receivable 54000 9.00 46000 8.52 Inventories 135000 22.50 143000 26.48 Prepaid Items 25000 4.17 10000 1.85 Total Assets current 274000 45.67 241000 44.63 Investments 27000 4.50 20000 3.70 plant net 270000 45.00 255000 47.22 Land 29000 4.83 24000 4.44 Total Assets $ 600,000 100.00 $ 540,000 100.00 Liabilities and Stock equity Liabilities Current Liabilities Notes payable $ 17,000 2.83 $ 6,000 1.11 Accounts payable 113800 18.97 100000 18.52 salaries payable 21000 3.50 15000 2.78 Total current liabilities 151800 25.30 121000 22.41 Noncurrent liabilities…
- Given:Avarege trade receivables of afirm is40.000,average finished goodsis 50.000, cost of goods sold is 200000 and net sales is 250.000. Whatis trade receivables turnover? a. 250.000/40.000b. 40.000/ 200.000c. 40.000/250.000d. 200.000/ 40.000==========5. Activity Ratios are used in the assessment ofa) The financial risk of the companyb) the profitability of the assetsc) the short term debt repayment capacity of the firmd)the efficiency of the asset or the source analyzedGiven the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000 What will be the Debtors Turnover Ratio (DTR)? a.16 b.6 c.5 d.8Given:Avarege trade receivables of afirm is40.000,average finished goodsis 50.000, cost of goods sold is 200000 and net sales is 250.000. Whatis trade receivables turnover? a. 250.000/40.000 b. 40.000/ 200.000 c. 40.000/250.000 d. 200.000/ 40.000 ========== 5. Activity Ratios are used in the assessment ofa) The financial risk of the companyb) the profitability of the assetsc) the short term debt repayment capacity of the firm d)the efficiency of the asset or the source analyzed
- The following data apply to A.L Kaiser & Company ($ million) : Cash and Equivalents $ 100.00Fixed Assets $ 283.50Sales $1,000.00Net Income $ 50.00Quick Ratio $ 2.0xCurrent Ratio 3.0xDSO 40.0 DaysROE 12.0% Kaiser has no preferred stock - Only common equity, current liabilities, and long-term debt. b. You should found Kaiser's accounts receivable (A/R) to be $111.1 million. If Kaiser could reduce its DSO from 40 days to 30 days while holding other things constant, how much cash would it generate? if this cash were used to buy back common stock (at book value) and thereby reduce the amount of common equity, how would this action affect the company's (1) ROE, (2) ROA, and (3) total deby/total assets ratio?A company has current liability of $500million, and its current ratio is 2.0. If the firm’s quick ratio is 1.2. How much inventory does it have? a. $400milliomb. $600milliomc. $300milliond. $500millionA company has current liability of $500million, and its current ratio is 2.0. If the firm’s quick ratio is 1.2. How much inventory does it have?a. $400milliomb. $600milliomc. $300milliond. $500million
- Q40 If the company’s Earnings before interest and taxes (EBIT) is OMR 500,000, the weighted average cost of capital is 12.5%, and the market value of the equity is OMR 1,000,000; then what is the value of Debt under Net Operating Income Approach? a. OMR 4,000,000 b. OMR 6,000,000 c. OMR 3,000,000 d. OMR 5,000,000XYZ’s balance sheet and income statement are given below:Balance SheetCash 50 Accounts payable 100A/R 150 Notes payable -Inventories 300 Long-term debt (10%) 700Fixed assets 500 Common equity (20 shares) 200Total assets 1,000 Total liabilities and equity 1,000Income StatementSales 1,000Cost of goods sold 855EBIT 145Interest 70EBT 75Taxes (33.33%) 25Net income 50The industry average inventory turnover is 5, the interest rate on the firm’s long-term debt is 10percent, 20 shares are outstanding, and the stock sells at a P/E of 8.0. If XYZ changed its inventorymethods so as to operate at the industry average inventory turnover, if it used the funds generated bythis change to buy back common stock at the current market price and thus to reduce common equity,and if sales, the cost of goods sold, and the P/E ratio remained constant, by what dollar amount wouldits stock price increase?Chen company has current assets equal to $5000000. Of these $1000000 is cash $2250000 is accounts receivable. $500000 is inventory and the remainder is marketable securities. Current liability total $4,000,000 calculate quick ratio and round to nearest two decimals.