Question
In: Finance
Duffert Industries has total assets of $1,050,000 and total current liabilities (consisting only of accounts payable...
Duffert Industries has total assets of $1,050,000 and total current liabilities (consisting only of accounts payable and accruals) of $150,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 40%. The firm's basic earning power ratio is 15% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations.
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Solutions
Expert Solution
TOTAL OPERATING CAPITAL IS SAME AS TOTAL INVESTED
CAPITAL.
jeff jeffy answered 1 year agoRelated Solutions
Llegget industries had total assets of $1,050,000 and total current liabilites (consisting only of accounts payable and accruals) of $150,000.
please show all work and calculations.Llegget industries had total assets of $1,050,000 and total
current liabilites (consisting only of accounts payable and
accruals) of $150,000. duffert finances using only long term debt
and common equity. the interest rate on its debt is 9% and its tax
rate is 40%. the firms basic earning power is 15% and its debt - to
cpaital rate is 40%. what are dufferts ROE and ROIC? do not round
your intermediate calculations.
Current assets Current liabilities Cash $72,000 Accounts payable $12,000 Accounts receivable 18,000 Interest payable 12,000 Interest...
Current assets
Current liabilities
Cash
$72,000
Accounts payable
$12,000
Accounts receivable
18,000
Interest payable
12,000
Interest receivable
1,000
Inventory
60,000
Total current assets
$151,000
Total current liabilities
$24,000
Long-term assets
Long-term liabilities
Equipment (net of depreciation)
$128,000
Note payable
100,000
Total long-term assets
$128,000
Total long-term liabilities
$100,000
Equity
Common stock
10,000
Paid-in capital
50,000
Retained earnings
95,000
Total equity
$155,000
Total assets
279,000
Total liabilities and equity
$279,000
Yes the difference between account payable and accounts
receivable is required....
Winston & Company, Inc Balance Sheet Assets: Liabilities: Current Assets $995,000 Accounts Payable $300,000 Notes Payable...
Winston & Company, Inc Balance Sheet Assets: Liabilities:
Current Assets $995,000 Accounts Payable $300,000 Notes Payable
$700,000 Fixed Assets $3,000,000 Other Current Liabilities $195,000
Bonds Payable $1,200,000 Total Liabilities $2,395,000 Equity
$1,600,000 Total Assets: $3,995,000 $3,995,000
Current Market Information: 700 Bonds - $1,000 20 years, 10 %
stated rate, issued 8 years ago – currently selling at .97 500
Bonds - $1,000, 10 years, 15% stated rate, issued 3 years ago –
currently selling at 1.05 100,000 shares of common...
Assuming current assets exceed current liabilities, determine the impact of reducing accounts payable using cash. A....
Assuming current assets exceed current liabilities, determine
the impact of reducing accounts payable using cash.
A. Increase the current ratio.
B. Decrease working capital.
C. Decrease the current ratio.
A firm has Current Assets of $500,000, Inventory of $200,000, Current Liabilities of $700,000, Total Assets...
A firm has Current Assets of $500,000, Inventory of $200,000,
Current Liabilities of $700,000, Total Assets of $3,000,000 and
Total Liabilities of $3,500,000. Which of the following statements
is correct:
a.
this firm is bankrupt
b.
this firm has a Quick Ratio that is greater than one
c.
this firm has positive equity
d.
this firm is technically insolvent
Cash $ 10,000 Accounts payable $ 30,000 Receivables 50,000 Notes payable 20,000 Inventories 150,000 Total current liabilities $ 50,000...
Cash
$ 10,000
Accounts payable
$ 30,000
Receivables
50,000
Notes payable
20,000
Inventories
150,000
Total current liabilities
$ 50,000
Total current assets
$ 210,000
Long-term debt
50,000
Net Fixed assets
90,000
Common equity
200,000
Total assets
$ 300,000
Total liabilities and equity
$ 300,000
Net Sales
200,000
Net income
15,000
Lloyd Inc. Has sales of $200,000, a net income of $15,000
(balance sheet posted above). The new owner thinks that inventories
are excessive and can be lowered to the point where the current...
Green Lumber has - Total sales of $387,200, - Total assets of $429,600, - Current liabilities...
Green Lumber has - Total sales of $387,200, - Total assets of
$429,600, - Current liabilities of $45,000, - Dividends paid of
$24,000, - Net income of $57,700.
Assume that all costs, assets, and current liabilities change
spontaneously with sales. The tax rate and dividend payout ratios
remain constant. Assume the firm is currently operating at full
capacity.
If the firm's managers project a firm growth rate of 12 percent
for next year, what will be the amount of external...
A firm has the following balance sheet: Assets Liabilities and Equity Cash $ 5,000 Accounts payable...
A firm has the following balance sheet:
Assets
Liabilities and Equity
Cash
$
5,000
Accounts payable
$
5,000
Accounts receivable
153,000
Long-term debt
109,000
Inventory
89,000
Common stock ($8 par;
32,000
4,000 shares outstanding)
Plant and equipment
190,000
Additional paid-in capital
148,000
Retained earnings
143,000
$437,000
$437,000
Construct a new balance sheet showing the impact of a
four-for-one split. If the current market price of the stock is
$55, what is the price after the split? Round the par value...
A firm has the following balance sheet: Assets Liabilities and Equity Cash $ 5,000 Accounts payable...
A firm has the following balance sheet:
Assets
Liabilities and Equity
Cash
$
5,000
Accounts payable
$
5,000
Accounts receivable
158,000
Long-term debt
111,000
Inventory
72,500
Common stock ($9 par;
31,500
3,500 shares outstanding)
Plant and equipment
210,000
Additional paid-in capital
150,000
Retained earnings
148,000
$445,500
$445,500
A. Construct a new balance sheet showing the impact of a
three-for-one split. If the current market price of the stock is
$56, what is the price after the split? Round the par...
Flying Penguins Corp. has total current assets of $8,755,000, current liabilities of $5,855,000, and a quick...
Flying Penguins Corp. has total current assets of $8,755,000,
current liabilities of $5,855,000, and a quick ratio of 0.78. How
much inventory does it have? (Round answer to nearest
dollar, e.g. 5,675.)
Level of inventory
$
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