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Long-term debt ratio Times interest earned 0.1 10.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.4 3.0 Inventory turnover Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 24.00 34.00 Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $34 Accounts receivable 48 Inventories 40 Total current assets $122 Net property, plant, and equipment 39 Total assets $161

Long-term debt ratio Times interest earned 0.1 10.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.4 3.0 Inventory turnover Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 24.00 34.00 Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $34 Accounts receivable 48 Inventories 40 Total current assets $122 Net property, plant, and equipment 39 Total assets $161

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 88PSA: Ratio Analysis Consider the following information taken from the stockholders equity section: How do...
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Use the attached information from the tables to work out the following missing entries, and then calculate the company’s return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)

Long-term debt ratiO 0.1 Times interest earned 10.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.4 Inventory turnover 3.0 Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses 24.00 Depreciation 34.00 Earnings before interest and taxes (EBIT) Interest expense Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $34 Accounts receivable 48 Inventories 40 Total current assets $122 Net property, plant, and equipment 39 Total assets $161
Transcribed Image Text:Long-term debt ratiO 0.1 Times interest earned 10.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.4 Inventory turnover 3.0 Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses 24.00 Depreciation 34.00 Earnings before interest and taxes (EBIT) Interest expense Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $34 Accounts receivable 48 Inventories 40 Total current assets $122 Net property, plant, and equipment 39 Total assets $161
Liabilities and shareholders' equity Accounts payable $20.00 $15 Notes payable 30.00 35 Total current liabilities $50 Long-term debt Shareholders' equity 22 89 Total liabilities and shareholders' equity $280.00 $161
Transcribed Image Text:Liabilities and shareholders' equity Accounts payable $20.00 $15 Notes payable 30.00 35 Total current liabilities $50 Long-term debt Shareholders' equity 22 89 Total liabilities and shareholders' equity $280.00 $161
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