Question
In: Finance
Sales Revenue is $1,000,000, Earnings Before Interest and Taxes is $400,000, and Earnings After Interest and...
Sales Revenue is $1,000,000, Earnings Before Interest and Taxes is $400,000, and Earnings After Interest and Taxes is $300,000. Accounts Receivable is $50,000. The Average Collection Period is (assume a 365 day year):
Solutions
Expert Solution
Average Collection Period = 365 * (Accounts Receivable / Sales Revenue)
Average Collection Period = 365 * ($50,000 / $1,000,000)
Average Collection Period = 18.25 days
jeff jeffy answered 1 year agoRelated Solutions
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals...
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals
$250,000, Earnings Before Interest and Taxes equals $400,000, and
Interest payments equals $50,000. What is this firm’s Times
Interest Earned?
a.
5
b.
2
c.
8
d.
need to know what its Taxes equal
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals...
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals
$250,000, Earnings Before Interest and Taxes equals $400,000, and
Total Assets equals $5,000,000. What is this firm’s Profit
Margin?
a.
20%
b.
12.5%
c.
5%
d.
none of the above
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals...
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals
$250,000, Earnings Before Interest and Taxes equals $400,000, and
Interest payments equals $50,000. What is this firm’s Times
Interest Earned?
a.
5
b.
2
c.
8
d.
need to know what its Taxes equal
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals...
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals
$250,000, Earnings Before Interest and Taxes equals $400,000, Total
Assets equals $5,000,000, and Total Debt equals $3,000,000. What is
this firm’s Return on Equity?
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals...
A firm’s Revenues equals $2,000,000, Earnings After Taxes equals
$250,000, Earnings Before Interest and Taxes equals $400,000, and
Interest payments equals $50,000. What is this firm’s Times
Interest Earned?
What are earnings before interest and taxes for 2000?
Use the following to answer questions 7-15:
1999 2000
Sales $2900 $3300
Cogs $2030 $2310
Interest $410 $420
Dividends $56 $79
Depreciation $290 $330
Cash $250 $150
Receiviables $242 $412
Current liabilities $900 $1100
Inventory $1015 $900
Long Term Debt $3200 $3100
Net Fixed Assets $6000 $5700
Tax Rate 34% 34%
7. What are earnings before interest and taxes for 2000?
A) $112
B) $158
C) $580
D) $660
E) $780
...
SALES $25,000 COSTS OF GOODS $16,000 DEPRECIATION $3,000 EARNINGS BEFORE INTEREST AND TAXES $6,000 INTEREST PAID...
SALES
$25,000
COSTS OF GOODS
$16,000
DEPRECIATION
$3,000
EARNINGS BEFORE INTEREST AND TAXES
$6,000
INTEREST PAID
$2,000
TAXABLE INCOME
$4,000
TAXES (34%)
$1,360
NET INCOME
$2,640
(ADDITION TO) RETAINED EARNINGS
$1,584
DIVIDENDS
$1,056
CURRENT ASSET
2002
2003
CURRENT LIABILITIES
2002
2003
CASH
$4,000
$3,000
ACCOUNTS PAYABLE
$3,000
$2,500
ACCOUNTS RECEIVABLE
$9,000
$11,000
NOTES PAYABLE
$6,000
$6,416
INVESNTORY
$5,000
$4,500
LONG TERM DEBT
$15,000
$13,000
OWNERS EQUITY
FIXED ASSETS
COMMON STOCK
$14,000
$16,500
NET FIXED ASSET(PLANT AND EQUIPMENT)
$30,000
$31,500
RETAINED...
SALES $25,000 COSTS OF GOODS $16,000 DEPRECIATION $3,000 EARNINGS BEFORE INTEREST AND TAXES $6,000 INTEREST PAID...
SALES
$25,000
COSTS OF GOODS
$16,000
DEPRECIATION
$3,000
EARNINGS BEFORE INTEREST AND TAXES
$6,000
INTEREST PAID
$2,000
TAXABLE INCOME
$4,000
TAXES (34%)
$1,360
NET INCOME
$2,640
(ADDITION TO) RETAINED EARNINGS
$1,584
DIVIDENDS
$1,056
CURRENT ASSET
2002
2003
CURRENT LIABILITIES
2002
2003
CASH
$4,000
$3,000
ACCOUNTS PAYABLE
$3,000
$2,500
ACCOUNTS RECEIVABLE
$9,000
$11,000
NOTES PAYABLE
$6,000
$6,416
INVESNTORY
$5,000
$4,500
LONG TERM DEBT
$15,000
$13,000
OWNERS EQUITY
FIXED ASSETS
COMMON STOCK
$14,000
$16,500
NET FIXED ASSET(PLANT AND EQUIPMENT)
$30,000
$31,500
RETAINED...
Earnings before depreciation, interest, and taxes $1,600,000 Depreciation expense
Earnings before depreciation, interest, and
taxes $1,600,000
Depreciation
expense $100,000
Tax
rate 40%
Interest
expense $10,000
Common
dividends
paid $200,000
Number
of shares of common stock
outstanding $500,000
a.
1.79
b.
1.39
c.
3.20
d.
1.20
A company expects to have earnings before interest and taxes (UAII) of $ 160,000 in each...
A company expects to have earnings before interest and taxes
(UAII) of $ 160,000 in each of the following 6 years. Pay annual
interest of $ 15,000. The firm is considering the purchase of an
asset that costs $ 140,000, requires $ 10,000 of installation costs
and has a 5-year payback period. It will be the sole asset of the
company and the depreciation for years 5 and 6 is $ 18,000 and $
7,500, respectively The company is subject...
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