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3 years ago

Crane Company has these comparative balance sheet data:

Business

1 answer:

algol133 years ago

4 0

Answer and Explanation:

A. Current ratio= current assets/current liabilities

= 33900+158200+135600/113000 = 2.9

B. Account Receivable Turnover = Sales/ Average account receivables

= 379100 -28000/158200+135600/2) = 2.39

c) Average collection period =

365/ account receivable turnover

= 365/2.39 =

152.72 days

D. inventory turnover = cost of goods sold / average inventory

= 203800/135600+113000/2 = 1.64

E. Days in inventory = 365/inventory turnover=

365/1.64 = 222.561 Days

F. Cash debt coverage

= cash from operating activities - dividend / total debt

= (58000 - 19600 )/(226000) = 0.17

G. Current cash debt coverage = net cash provided by the operating activities / average current liabilities

=58000 /113000 + 135600/2) = 0.467

H. Cash flow available = cash flow from operating activities - Capital Expenditure- Cash Dividend

$(58000-27500-19600)

= $10900

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A manager checked production records and found that a worker produced 156 units while working 40 hours. In the previous week, th

andrezito [222]

Answer:

(a) 3.9 units/hour; 3.5 units/hour

(b) 11.43%

Explanation:

(a) Current period productivity:

= Current output ÷ Current labor hours

= 156 units ÷ 40 hours

= 3.9 units per hour

Previous week's productivity:

= Previous week's output ÷ Previous week's labor hours

= 105 units ÷ 30 hours

= 3.5 units per hour

(b) Percentage change in worker's productivity:

= (Change in productivity ÷ Previous week's productivity) × 100

= [(3.9 - 3.5) ÷ 3.5] × 100

= 11.43%

Therefore, the worker's productivity increases by 11.43%.

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3 years ago

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3 years ago

Read 2 more answers

Tempo Corp. will issue preferred stock to finance a new artillery line. The firm's existing preferred stock pays a dividend of $

Len [333]

Answer: Relevant cost of new preferred stock = 10.53%

Explanation:

Given:

Dividend = $4.00 per share

Selling for = $40 per share.

Flotation costs = 5% of the selling price.

Marginal tax rate is 30%.