Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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An analyst has collected the following information regarding GoNa Grocers:
Earnings before interest and taxes (EBIT) - P700 million
Earnings before interest, taxes and depreciation (EBITDA) -P850 million
Interest expense is P200 million
Depreciation is the company’s only non-cash expense
What is the company’s net cash flow?
MNO, Inc., a publicly traded manufacturing firm in the United States, has provided the following financial information in its application for a loan.
Assets Liabilities and Equity
Cash $ 20 Accounts Payable $ 30
Accounts Receivables $ 90 Notes Payable $ 90
Inventory $ 90 Accruals $ 30
Long Term Debt $150
Plant and equipment $500 Equity $400
Total Assets $700 Total Liabilities & Equity $700
Also assume sales = $500, cost of goods sold = $360, taxes = $56, interest payments = $40, net income = $44, the dividend payout ratio is 50 percent, and the market value of equity is equal to the book value.
Requirement: What is the Altman z-score value value for MNO, Inc.? Should a bank extend loan to MNO Inc?
The area of finance address the issue of the efficiency of financial market in the allocation of recourses is known as:
Corporate finance;
Public finance:
International finance;
2. A level of revenues, expenses and profit that occurred during a given accounting period are given in:
Balance sheet;
Income statement;
A+B
3. Sales minus cost of goods sold is:
Net profit;
Operating profit;
Gross profit;
4. The assets defined as cash and assets that will turn into cash within a year are defined as:
Current assets;
Non current assets;
Fixed assets:
5. The liabilities due within a year are defined as:
Current liabilities;
Expenses:
Non current liabilities;
6. Collecting of receivables and liquidation of assets concerns:
Sources of funds;
Uses of funds;
Revenues:
7. Uses of funds are:
Increase in a liability account and increase in an asset account;
Payment of dividends and decrease in asset account;
Increase in an asset account and payment of dividends;
8. New bank loan can be…
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- Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total current assets of $79,000, and total current liabilities of $27,650. The company reported annual sales of $200,000 in the most recent annual report. Over the past year, how often did Walker Telecommunications sell and replace its inventory? A---8.01x B---2.86x C---9.28x D---8.44x The inventory turnover ratio across companies in the telecommunications industry is 9.284x. Based on this…arrow_forwardAsset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total current assets of $79,000, and total current liabilities of $27,650. The company reported annual sales of $200,000 in the most recent annual report. Additionally, the company’s cost of goods sold is 75% of sales. Over the past year, how often did Walker Telecommunications sell and replace its inventory? 8.01x 2.86x 6.33x 6.96x The inventory turnover…arrow_forwardAsset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total current assets of $79,000, and total current liabilities of $27,650. The company reported annual sales of $200,000 in the most recent annual report. Over the past year, how often did Walker Telecommunications sell and replace its inventory? 8.01x 8.44x 9.28x 2.86x The inventory turnover ratio across companies in the telecommunications industry is…arrow_forward
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