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Answer the following questions: Question G A firm has the following balance sheet as June 14,...

Answer the following questions:

Question G

A firm has the following balance sheet as June 14, 2018. What is its current ratio?

Cash

$10,000

Inventory

$25,000

Prepaid Expenses

$10,000

Property, Plant, and Equipment

$100,000

Goodwill

$25,000

Total Assets

$170,000

Accounts Payable

$5,000

Accruals

$15,000

Current Portion of Long Term Bonds Payable

$25,000

Long Term Bonds Payable

$50,000

Common Stock, Par

$1,000

Common Stock, Paid in Capital

$50,000

Retained Earnings

$24,000

Total Liabilities and Equity

$170,000

Question H

Using the information below, calculate the 2018 Operating Cash Flow.

2018

2017

Cash

$    10,000.00

$      8,000.00

Inventory

$    25,000.00

$      5,000.00

Prepaid Expenses

$    10,000.00

$      5,000.00

Property, Plant, and Equipment

$ 100,000.00

$ 110,000.00

Goodwill

$    25,000.00

$    25,000.00

Total Assets

$ 170,000.00

$ 153,000.00

Accounts Payable

$      5,000.00

$    10,000.00

Accruals

$    15,000.00

$      8,500.00

Current Portion of Long Term Bonds Payable

$    25,000.00

$      7,000.00

Long Term Bonds Payable

$    50,000.00

$    60,000.00

Common Stock, Par

$      1,000.00

$      1,000.00

Common Stock, Paid in Capital

$    50,000.00

$    50,000.00

Retained Earnings

$    24,000.00

$    16,500.00

Total Liabilities and Equity

$ 170,000.00

$ 153,000.00

Sales

$ 100,000.00

$    90,000.00

COGS

$    25,000.00

$    20,000.00

Gross Profit

$    75,000.00

$    70,000.00

Depreciation

$    20,000.00

$    18,000.00

EBIT

$    55,000.00

$    52,000.00

Interest

$      5,000.00

$    10,000.00

EBT

$    60,000.00

$    42,000.00

Taxes

$    12,600.00

$      8,820.00

NI

$    47,400.00

$    33,180.00

Question I

A firm's ROE has increased from 2017 to 2018. Using the information below, identify the ROE component that is responsible for the increase.

2018

2017

Cash

$    10,000.00

$      8,000.00

Inventory

$    25,000.00

$      5,000.00

Prepaid Expenses

$    10,000.00

$      5,000.00

Property, Plant, and Equipment

$ 100,000.00

$ 110,000.00

Goodwill

$    25,000.00

$    25,000.00

Total Assets

$ 170,000.00

$ 153,000.00

Accounts Payable

$      5,000.00

$    10,000.00

Accruals

$    15,000.00

$      8,500.00

Current Portion of Long Term Bonds Payable

$    25,000.00

$      7,000.00

Long Term Bonds Payable

$    50,000.00

$    60,000.00

Common Stock, Par

$      1,000.00

$      1,000.00

Common Stock, Paid in Capital

$    50,000.00

$    50,000.00

Retained Earnings

$    24,000.00

$    16,500.00

Total Liabilities and Equity

$ 170,000.00

$ 153,000.00

Sales

$ 100,000.00

$    90,000.00

COGS

$    25,000.00

$    20,000.00

Gross Profit

$    75,000.00

$    70,000.00

Depreciation

$    20,000.00

$    18,000.00

EBIT

$    55,000.00

$    52,000.00

Interest

$      5,000.00

$    10,000.00

EBT

$    60,000.00

$    42,000.00

Taxes

$    12,600.00

$      8,820.00

NI

$    47,400.00

$    33,180.00

Question J

A firm has a ROA of 10% and a debt ratio of 75%. The firm has sales of $50,000 and net income of $10,000. How much equity does the firm have?

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