PRIN.OF CORPORATE FINANCE >BI<
12th Edition
ISBN: 9781260431230
Author: BREALEY
Publisher: MCG CUSTOM
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Chapter 28, Problem 9PS
Summary Introduction
To compute: The sales to asset turnover ratio.
Summary Introduction
To compute: The
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Du Pont Analysis
TRP has total receiveables of $3,000, which represents 20 days sales. Total assets are $75,000. The operating profit margin is 5%.
Find the firms ROA and its assets turnover ratio.
1. Aboridor company had the following results last year: Sales, P700,000; Return on Investment, 28%; and profit margin of 8%. How much was the operating assets last year?
2. Jadafe makes all purchases on account, subject to the following payment pattern:Paid in the month of purchase .................. ..... 30%Paid in the first month following the purchase ....... 60%Paid in the second month following the purchase .. 10%If purchases for January, February and March were P200,000; P180,000; and P230,000,respectively, what were the firm’s budgeted payments in March?
3. Ariba Company Consists of two stores, Amina and Ramina. Store Amina has a sales of P80,000 during April,a contribution margin ratio of 30% and a segment margin of P11,000. The company as awhole had sales of P200,000, a contribution margin of 36%, segment margin for the twostores totalling P31,000. If the net income of the company was P15,000 for the month, whatmust have been the traceable fixed expenses in Store Ramina.
he Brenmar Sales Company had a gross profit margin (gross
profits÷sales)
of
34
percent and sales of
$8.3
million last year.
79
percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal
$1.5
million, its current liabilities equal
a. If Brenmar's accounts receivable equal
$563,000,
what is its average collection period?
b. If Brenmar reduces its average collection period to
25
days, what will be its new level of accounts receivable?
c. Brenmar's inventory turnover ratio is
8.9
times. What is the level of Brenmar's inventories?
$303,100,
and it has
$104,400
in cash plus marketable securities.
Chapter 28 Solutions
PRIN.OF CORPORATE FINANCE >BI<
Ch. 28 - Prob. 1PSCh. 28 - Financial ratios Table 28.10 gives abbreviated...Ch. 28 - Performance measures Look again at Table 28.10. At...Ch. 28 - Prob. 5PSCh. 28 - Financial ratios True or false? a. A companys...Ch. 28 - Book rates of return Keller Cosmetics maintains an...Ch. 28 - Prob. 8PSCh. 28 - Prob. 9PSCh. 28 - Prob. 10PSCh. 28 - Prob. 11PS
Ch. 28 - Prob. 12PSCh. 28 - Prob. 13PSCh. 28 - Prob. 14PSCh. 28 - Performance measures Describe some alternative...Ch. 28 - Prob. 16PSCh. 28 - Prob. 17PSCh. 28 - Prob. 18PSCh. 28 - Financial ratios Sara Togas sells all its output...Ch. 28 - Prob. 20PSCh. 28 - Prob. 21PSCh. 28 - Prob. 22PSCh. 28 - Prob. 23PSCh. 28 - Prob. 25PSCh. 28 - Prob. 26PSCh. 28 - Prob. 27PS
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