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 1 year ago
Next > < Previous

Related Solutions

Assume the returns from holding an asset are normally distributed. Also assume the average annual return...
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 16.3 percent and the standard deviation of this asset for the period was 33.5 percent. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) What is the approximate probability...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000: Cash $ 32,000 Accounts receivable 68,000 (worth $36,000) Inventory 78,000 (worth $64,000) Land (secures note A) 208,000 (worth $168,000) Building (secures bonds) 408,000 (worth $336,000) Equipment 128,000 (worth unknown) Accounts payable 188,000 Taxes payable to government 28,000 Note payable A 186,000 Note payable B 258,000 Bonds payable 308,000 The holders of note payable B want...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000: Cash $ 32,000 Accounts receivable 68,000 (worth $36,000) Inventory 78,000 (worth $64,000) Land (secures note A) 208,000 (worth $168,000) Building (secures bonds) 408,000 (worth $336,000) Equipment 128,000 (worth unknown) Accounts payable 188,000 Taxes payable to government 28,000 Note payable A 186,000 Note payable B 258,000 Bonds payable 308,000 The holders of note payable B want...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000: Cash $ 32,000 Accounts receivable 68,000 (worth $36,000) Inventory 78,000 (worth $64,000) Land (secures note A) 208,000 (worth $168,000) Building (secures bonds) 408,000 (worth $336,000) Equipment 128,000 (worth unknown) Accounts payable 188,000 Taxes payable to government 28,000 Note payable A 186,000 Note payable B 258,000 Bonds payable 308,000 The holders of note payable B want...
Asset Type Asset Amount Liability Liability Amount Reserves Checkable Deposits Loans Bank Capital Assume the government...
Asset Type Asset Amount Liability Liability Amount Reserves Checkable Deposits Loans Bank Capital Assume the government of Smithville uses measures of monetary aggregates similar to those used by the United States. The central bank of Smithville imposes a required reserve ratio of 20 percent. For additional information, refer to the figures below: Bank Deposits held at the central bank = $400 million Currency and coin held by the public = $500 million Currency and coin in bank vaults = $200...
1. A bank has an average asset duration of 4 years and an average liability duration...
1. A bank has an average asset duration of 4 years and an average liability duration of 1.5 years. This bank has total assets of $500 million and total liabilities of $450 million. Currently, market interest rates are 10 percent. If interest rates rise by 1 percent (to 11 percent), what is this bank's change in net worth? a. net worth will decrease by $12.05 million b. net worth will decrease by $15.45 million c. net worth will increase by...
Banque Langenberg reports an average asset duration of 7 years and an average liability duration of...
Banque Langenberg reports an average asset duration of 7 years and an average liability duration of 4 years. In it's latest report the bank recorded total assets of $1.8 billion and total liabilities of $1.5 billion. Initially the interest rate is 5.0%. Average asset duration Average liability duration Total assets Total liabilities Initial interest rate Interest rate after change Results Change in interest rates 0.00% Change in net worth 0 What is the impact on net worth if the interest...
4. ) Stillwater Bank reports an average asset duration of 3.25 years and an average liability...
4. ) Stillwater Bank reports an average asset duration of 3.25 years and an average liability duration of 1.75 years. Liabilities are $485 million, while assets total $512 million. Suppose that interest rates are 6% but rise to 7.5%. What will happen to Stillwater's net worth if interest rates rise?
Question 6 A bank has an average asset duration of 4 years and an average liability...
Question 6 A bank has an average asset duration of 4 years and an average liability duration of 1.5 years. This bank has total assets of $500 million and total liabilities of $450 million. Currently, market interest rates are 10 percent. If interest rates rise by 1 percent (to 11 percent), what is this bank's change in net worth? A. Net worth will decrease by $12.05 million B. Net worth will decrease by $15.45 million C. Either the net worth...
A bank has an average asset duration of 4.2 years and an average liability duration of 2.4 years.
A bank has an average asset duration of 4.2 years and an average liability duration of 2.4 years. This bank has total assets of $650 million and total liabilities of $420 million. Currently, market interest rates are 7 percent. If interest rates fall by 1 percent (to 6 percent), what is this bank's change in net worth?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT