70.2K
Verified Solution
Link Copied!
For question 7 use the following information. You may need to calculate some of the missing values to be able to answer all questions:
Income Statement:
Sales 1,000,000
Cost of goods sold ??
Depreciation 100,000
SG&A expense ??
EBIT ??
Interest expense 50,000
Tax expense 20,000
Net income ??
Balance Sheet:
Cash 100,000
Accounts Payable 100,000
Accounts Receivable 50,000
Other current liabilities ???
Inventory ???
Total current liabilities ???
Current Assets ??? Long term debt 100,000
Fixed Assets 200,000
Total Liabilities ???
Intangible Assets 0
Total equity ???
Total Assets ???
Notable financial ratios:
Cost of goods sold/revenue: 70%
SG&A expenses/revenue: 10%
Current ratio: .73333333
Inventory turns: 10
Dividend yield: 5%
Price earnings ratio: 20
A. What is the firms debt/equity ratio?
B. What is the firms return on equity?
C. What is the firms equity multiplier?
D. What is the firms total asset turnover?
E. What is the firms quick ratio?
F. What is the firms market to book ratio?
Answer & Explanation
Solved by verified expert
