AEI incorporated has $5B in assets and its tax rate is 40%.Its basic earning power ratio is 10% and its ROA is 5%. What is AEI’s times interest earned (TIE) ratio?
1. AEI incorporated has $5B in assets and its tax rate is 40%.Its basic earning power ratio is 10% and its
2. Harrelson Inc. currently has $750,000 in accounts receivable. Its days sales outstanding (DSO) is 55 days. It wants to reduce its DSO to the industry average of 35 days by pressuring customers to pay on time. The Chief Financial Officer (CFO) estimates that average sales will fall by 15% if the policy is adopted. Assuming the firms achieves the DSO of 35 days and suffers the 15% sales decline, what will be the new level of accounts receivable? Assume 1 year =365 days
3. Ebersoll Manufacturing Co. has $6M in sales. Its
4. Complete the following balance sheet using the given information: Debt ratio =50%. Total assets turnover = 1.5, current ratio =1.8, DSO = 36.5 days, gross profit margin on sales [(sales – cost of goods sold)/sales] = 25%, Inventory turnover ratio = 5.
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ASSETS ($) LIABILITIES & EQUITY ($) |
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Cash Acccounts Payable |
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Accounts Receivable Long Term Debt 60,000 |
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Inventories Common Stock |
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Fixed Assets __________ |
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Total Assets 300,000 Total Liabilities & Equity ……….. |
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