Calculate the inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. Has the company’s ability to manage its assets improved or worsened? Explain. A computer manufacturer has financial statements as follows: Income Statements for Year Ending December 31 (Thousands of Dollars) 20192018Sales $945,000$900,000Expenses excluding depreciation and amortization812,700774,000 EBITDA $132,300$126,000Depreciation and amortization 33,10031,500 EBIT $99,200$94,500Interest Expense 10,4708,600 EBT $88,730$85,900Taxes (25%) 22,18321,475 Net income $66,547$64,425 Common dividends $56,609$54,115Addition to retained earnings $9,938$10,310 Balance Sheets for Year Ending December 31 (Thousands of Dollars) Assets 20192018Cash and cash equivalents $47,250$45,000Short-term investments 3,8003,600Accounts Receivable 283,500270,000Inventories 141,750135,000 Total current assets $476,300$453,600 Net fixed assets 330,750315,000Total assets $807,050$768,600 Liabilities and equity Accounts payable $94,500$90,000Accruals 47,25045,000Notes payable 26,2629,000 Total current liabilities $168,012$144,000Long-term debt 94,50090,000 Total liabilities $262,512$234,000Common stock 444,600444,600Retained Earnings 99,93890,000 Total common equity $544,538$534,600Total liabilities and equity $807,050$768,600 Other data Tax rate 25% Shares outstanding 15,000,000 Stock price $65 per shareWACC 8%

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Description: Calculate the inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. Has the company’s ability to manage its assets improved or worsened? Explain. A computer manufacturer has financial statements as foll

Inventory turnover=COGS or revenueAverage inventory at cost Days sales outstanding (DSO)=Accounts…

Answered: Calculate the inventory turnover, days…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 14PB: Assuming a companys year-end inventory were understated by $16,000, indicate the effect...

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Calculate the inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. Has the company’s ability to manage its assets improved or worsened? Explain.

A computer manufacturer has financial statements as follows:

Income Statements for Year Ending December 31
(Thousands of Dollars)			2019	2018
Sales				$945,000	$900,000
Expenses excluding depreciation and amortization	812,700	774,000
EBITDA				$132,300	$126,000
Depreciation and amortization		33,100	31,500
EBIT				$99,200	$94,500
Interest Expense			10,470	8,600
EBT				$88,730	$85,900
Taxes (25%)				22,183	21,475
Net income				$66,547	$64,425

Common dividends			$56,609	$54,115
Addition to retained earnings		$9,938	$10,310

Balance Sheets for Year Ending December 31
(Thousands of Dollars)
*Assets*				2019	2018
Cash and cash equivalents			$47,250	$45,000
Short-term investments			3,800	3,600
Accounts Receivable			283,500	270,000
Inventories				141,750	135,000
Total current assets			$476,300	$453,600
Net fixed assets			330,750	315,000
Total assets				$807,050	$768,600

*Liabilities and equity*
Accounts payable			$94,500	$90,000
Accruals				47,250	45,000
Notes payable			26,262	9,000
Total current liabilities			$168,012	$144,000
Long-term debt			94,500	90,000
Total liabilities			$262,512	$234,000
Common stock			444,600	444,600
Retained Earnings			99,938	90,000
Total common equity			$544,538	$534,600
Total liabilities and equity			$807,050	$768,600

Other data
Tax rate				25%

Shares outstanding 15,000,000

Stock price $65 per share

WACC

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