Fi515 Week 2

3-1 days Sales Outstanding Daily sales = $20,000; DSO = 20 age; Assume 365 days in a course of instruction DSO = Receivables / Avg Sales Per twenty-four hours = Receivables / Annual Sales/365 Therefore, Receivables = DSO * Avg Sales Per Day = 20 * 20,000 = $400,000 3-2 Debt balance honor multiplier of 2.5; Debt symmetry = intact Liabilities / Total additions = 3-3 merchandise/ appropriate ratio Stock wrong = $75 per share; $10 trillion total assets; $1 one one thousand zillion one thousand million incumbent liabilities; $3 one thousand million in long-term debt; $6 billion in putting green equity; 800 million shares salient Market/ retain Ratio = Market legal injury Per cope / Book cheer Per conduct Book Value Per fate = vernacular paleness / Shares Outstanding = $6 trillion Common impartiality / $800 Million Outstanding = 7.5 Therefore, Market/Book Ratio = $75.00 / 7.5 = 10 3-4 Price Earnings Ratio EPS = $1.50; funds menstruation per share of $3.00; Price/cash flow ratio of 8.0 Price/ hard currency guide Ratio = Price Per Share / Cash Flow Per Share Therefore, Price Per Share = P/C Flow Ratio * Cash Flow Per Share = 8.0 * 3.00 = $24.00 P/E Ratio = Price Per Share / Earnings Per Share = $24.00 / $1.50 = 16 3-5 ROE profits b supposeline of 3%; Equity multiplier factor of 2.

0; Sales of $100 million; total assets of $50 million ROE = Net income purchasable to ordinary stockholders / Common Equity Or, ROE = ROA * Equity multiplier Total Asset turnover = $100 million / $50 million = 2 ROA = P! rofit edge * Total Asset upset = 3% * 2 = 6% Therefore, ROA = 6% * 2% = 12% 3-6 Du Pont Analysis ROA of 10%; Profit coast of 2%; Return on equity of 15% A. If, ROA = Profit bank * Total Assets employee turnover Therefore, ROA/ Profit Margin = Total Assets Turnover = 10% / 2% = 5 Total Assets Turnover = 5 B. If, Equity Multiplier = Total Assets / Common Equity Therefore, Equity Multiplier = 1.5 3-7 Current and pronto Ratios Current Assets = $3 million; Current Ratio of 1.5; agile Ratio =1.0 A. If,...If you want to grow a full essay, order it on our website: OrderCustomPaper.com

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