Selzer Co. sells all its merchandise on credit. It has a profit margin of 4%, days sales outstanding equal to 60 days, receivables of $150,000, total assets of $3 million, and a debt ratio of 0.64. what is the firm’s return on equity (ROE)? Assume a 360-day year.

Q: Mandesa, Inc. has current liabilities of $10,000,000, current ratio of 1.8 times, inventory turnover…

A: Marketable securities are the securities that are transferable in the market from one investor ot…

Q: Selzer Inc. sells all its merchandise on credit. It has a profit margin of 4 percent, days sales…

A: The return on equity(ROE) measures the financial performance of the company. It measures the…

Q: Alta Construction days sales outstanding is 50 days (365 days in a year). The company’s accounts…

A: Financial ratios give us an idea about the financial performance of the company. Inventory turn over…

Q: What is the acid-test ratio?

A: Acid test ratio is a financial ratio that helps an entity to assess if it is able to meet its…

Q: Red Company has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40…

A: Interest expenses = $10,000 Sales = $1,000,000 Tax rate = 40% Net profit ratio = 6% Profit before…

Q: Toyto Corp. has net working capital of $1,370, current liabilities of $3,720 and inventory of…

A: Net Working Capital: Cash, accounts receivable/customers' unpaid bills, and inventories of raw…

Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…

A: Formula: Times interest ratio = Operating income / interest expense

Q: National Co. had P24,000,000 in sales last year.  The company’s net income was P500,000, its total…

A: Financial ratios: Financial ratios are performance measurement methods used by a company to Measure…

Q: Plank’s Plants had net income of $6,000 on sales of $70,000 last year. The firm paid a dividend of…

A: Return on equity is a ratio which states about the share of earnings generated through the equity or…

Q: WW Co has a current ratio of 2. Receivables are $3 million and current liabilities are $2 million.…

A: We have the following information: Current Ratio: 2 Receivables: $3,000,000 Current Liabilities:…

Q: Selzer Inc. sells all its merchandise on credit. It has a profit margin of 4 percent, days sales…

A: Return on equity refers to the earnings made over equity amount invested. Higher return on equity is…

Q: The following financial information relates to XYZ Company: Inventory turnover: 5 times Accounts…

A: Operating cycle measures the time taken by a company to convert its inventory into cash. Operating…

Q: What are the annual sales for a firm with $800,000 in debt, a total debt ratio of .06, and an asset…

A: Debt = 800,000 Total Debt ratio= 0.60 Asset turnover ratio =2

Q: You are trying to prepare financial statements for Bartlett Pickle Company, but seem to be missing…

A: Collection Period :— It is the average number of period to collect the receivables from customer.…

Q: Next year, you are forecasting sales for your company of $12 million. There is only one category of…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Calculate the ratios for Adenta Ltd equivalent to the industry averages and as the Financial…

A: Number of Shareholders'  = Share Capital / Per Share Price  = GH¢ 3000,000/ GH¢ 0.25  = 12,000,000

Q: The National Co. has an inventory conversion period of 60 days, a receivable conversion period of 35…

A: Solution Working note - Average daily sales = 3375000 / 360 = 9,375.

Q: The Ashwood Company has a long-term debt ratio of .45 and a current ratio of 1.25. Current…

A: Long term debt ratio = long term debt/(long term debt+equity) = 0.45 Current ratio = current…

Q: 1) Projected sales are $6,006,000. 2) Cost of goods sold last year includes $998,000 in fixed costs.…

A: Under Judgmental approach of forecasting financial statements, the pro forma balance sheet uses…

Q: In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and…

A: Times Interest Earned = Earnings Before Interest and Tax/ Interest Expense

Q: Dopey, Inc., a national clothing chain had sales of P 300 million last year. The business has a…

A: Given, Dividend payout ratio (D) is 8% Liabilities (L) is 120 ($70+$20+$30) Sales (S) is $300

Q: areez Pharma is trying to determine the effect of its inventory and receivable turnover ratios on…

A: Cash Conversion cycle is the number of times cash is circulated in the cycle of receivables, payable…

Q: Billy's Chrystal Stores Inc , has assets of $5,000,000 and turns over its assets 1.2 times per year.…

A: Return on assets = Profit / Assets

Q: Mareez Pharma is trying to determine the effect of its inventory and receivable turnover ratios on…

A: Cash conversion cycle is the total time period taken by the firm to complete its operating cycle. It…

Q: Keller Cosmetics maintains an operating profit margin of 9.00% and a sales-to-assets ratio of 3.90.…

A: Note: Given situation consists of multiple questions and in this situation, no specified one…

Q: Ethelbert Inc. has sales of $5,366, total assets of $3,195, and a debt–equity ratio of 1.90. If its…

A: Operations and events involved in marketing and selling products or services” are included in sales.

Q: The Lux Co. has an inventory conversion period of 60 days, a receivable conversion period of 35…

A: The answer is stated below:

Q: Tess' Shop, Inc., a national clothing chain, had sales of P300 millions last year. The business has…

A: The percent to sales method is used in order to calculate the external funds required.

Q: Mareez Pharma is trying to determine the effect of its inventory and receivable turnover ratios on…

A: Net income=Sale×Net income margin=$5,000,000×10%=$500,000

Q: S Ltd. Has equity of Rs.6Lacs issued at par. The following additional information is provided: r . .…

A: Please find attachment below In step 2 balence sheet  with working notes

Q: Jude Corp. has annual sales of P50,735,000, an average inventory level of P15,012,000, and average…

A: Cash conversion cycle (CCC) It is the number of days required to convert cash (invested in operation…

Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…

A: Formula: Times interest ratio = Operating income / Interest expense

Q: Berman & Jaccor Corporation's current sales and partial balance sheet are shown below.     This…

A: Operating assets: The  operating assets are those assets which are used in its day to operations…

Q: a) Kareem & Sons last year reported sales of 12 million and an inventory turnover ratio of 4. The…

A: Inventory = Sales/ Inventory turnover ratio  Accounts receivable = DSO * Average Day Sales

Q: b) Medwing Corporation has a DSO of 19 days. The company averages 5,500 in credit sales each day.…

A: Answer b: Average amount of receivables=Sales×DSO360=$5,500×19360=$290.28

Q: he newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report…

A: Hi, as per our policy we will answer the first three parts. Kindly repost the remaining parts…

Q: Plank’s Plants had net income of $6,000 on sales of $70,000 last year. The firm paid a dividend of…

A: Sustainable growth rate is the maximum growth rate at which firm can grow. It can be calculated…

Q: times-interest-earned ratio

A: Times interest earned ratio = Earnings before interest and taxes/Interest expense

Q: Oregon Office Supply had 24,000,000 in sales last year. The company’s net income was 400,000, its…

A: SALE 24,000,000 NET INCOME 400,000 TOTAL ASSETS TURNOVER  6.0 ROE 15% DEBT RATIO   ?

Q: Neon Light Company has $1,000,000 in assets and $600,000 of debt. It reports net income of $100,000.…

A: return on sales=incomesales given, asset = $1000,000 debt = $600,000 asset turnover = 3

Q: Last year, Hassan's Madhatter, Inc. had an ROA of 6 percent, a profit margin of 12.80 percent, and…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Green Caterpillar Garden Supplies Inc. reported sales of $890,000 at the end of last year, but this…

A: Data given: So= Current sales = $890,000  ∆S/ So= % change in sales = 7% PM= Profit Margin = 24%…

Q: Smiley Corporation's current sales and partial balance sheet are shown below.     This year Sales…

A: Spontaneous liabilities are those which increase or decrease with the level of sales, rather than…

Q: Libscomb Technologies' annual sales are $6,997,444 and all sales are made on credit, it purchases…

A: Receivables turnover = Net credit sales / Average Receivables

Q: Smiley Corporation's current sales and partial balance sheet are shown below.     This year Sales…

A: Spontaneous liabilities are liabilities which changes with sales and are recorded as direct result…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.