Question

In: Accounting

Assume the following asset and liability values represent the average values over the year. Also, assume...

Assume the following asset and liability values represent the average values over the year. Also, assume all sales are on credit.

Account

Cash $125,000

Accounts Receivable $175,000

Inventory $125,000   

Property, Plant & Equipment $200,000

Current Liabilities $325,000

Long-term Liabilities $275,000

Stockholders’ Equity $25,000

Total Sales Revenue $800,000          

Total Expense $600,000 (includes $250,000 COGS)     

Outstanding Shares 100,000

Price per Share $50/shr    

How is Vertical Analysis calculated and what does it communicate?

What is the company’s AR Turnover?


Inventory Turnover?


Days in Inventory?



What is the company’s profit margin?

What is the company’s Return on Assets?


Return on EQ?

What is another way to calculate ROE?


What is the stock’s P/E ratio?

What is the company’s Debt Ratio?

Solutions

Expert Solution

Assume the following asset and liability values represent the average values over the year. Also, assume all sales are on credit.

Account

Cash $125,000

ekkarill92 answered 2 years ago
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