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Shtirlitz [24]
3 years ago
14

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does no

t lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Balance Sheet (Millions of $)
Assets 2016
Cash and securities $2,145
Accounts receivable 8,970
Inventories 12,480
Total current assets $23,595
Net plant and equipment $15,405
Total assets $39,000
Liabilities and Equity Accounts payable $7,410
Accruals 4,290
Notes payable 5,460
Total current liabilities $17,160
Long-term bonds $7,800
Total liabilities $24,960
Common stock $5,460
Retained earnings 8,580
Total common equity $14,040
Total liabilities and equity $39,000
Income Statement (Millions of $) 2016
Net sales $58,500
Operating costs except depreciation 54,698
Depreciation 1,024
Earnings before interest and taxes (EBIT) $2,779
Less interest 829
Earnings before taxes (EBT) $1,950
Taxes 683
Net income $1,268
Other data: Shares outstanding (millions) 500.00
Common dividends (millions of $) $443.63
Int rate on notes payable & L-T bonds 6.25%Federal plus state income tax rate 35%Year-end stock price $23.77A. What is the firm's current ratio?B. What is the firm's quick ratio?C. What is the firm's days sales outstanding? Assume a 365-day year for this calculation.D. What is the firm's total assets turnover?E. What is the firm's inventory turnover ratio?F. What is the firm's TIE?G. What is the firm's debt/assets ratio?H. What is the firm's ROA?I. What is the firm's ROE?
Business
1 answer:
nlexa [21]3 years ago
7 0

Answer:

A. 1.375

B. 0.648

C. 77.87 days

D. 1.5 times

E. 4.69 times

F. 3.35 times

G. 34 %

H. 4.63 %

I.  23.22%

Explanation:

A. What is the firm's current ratio

current ratio = current assets / current liabilities

                     = $23,595 / $17,160

                     = 1.375

B. What is the firm's quick ratio

 quick ratio   = (current assets - inventory) / current liabilities

                     = ($23,595 - $12,480) / $17,160

                     = 0.648

C. What is the firm's days sales outstanding Assume a 365-day year for this calculation.

days sales outstanding = Inventory / (Sales / 365)

                                       = $12,480 / ($58,500 /365)

                                       = 77.87 days

D. What is the firm's total assets turnover

total assets turnover = Sales / Total Assets

                                  = $58,500 / $39,000

                                  = 1.5 times

E. What is the firm's inventory turnover ratio?

inventory turnover ratio = Sales / Inventory

                                        = $58,500 / $12,480

                                        = 4.69 times

F. What is the firm's TIE?

Total Interest Expense (TIE) = Earnings before interest and taxes (EBIT) / Total Interest Expense

                                              = $2,779 / $829

                                              = 3.35 times

G. What is the firm's debt/assets ratio?

debt/assets ratio = Total Debt / Total Assets × 100

                            = ($5,460 + $ $7,800) / $39,000 × 100

                            = 34 %

H. What is the firm's ROA?

Return on Assets (ROA) = Earnings Before Interest After Tax (EBIAT) / Total Assets × 100

                                        = ($1,268 + ($829 × 65%)) / $39,000 × 100

                                        = 4.63 %

I. What is the firm's ROE?

Return on Equity (ROE) = Net Income / Total Shareholders Funds

                                      = $1,268 / $5,460 × 100

                                      = 23.22%

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Answer:

Walton Company

Income Statement

                                   Actual                Budgeted            Variances

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We calculate the actual amounts from the budgeted amount by adding the variances when they are unfavorable and subtracting them when they are favorable . But in case of sales this is reversed. The actual sales are calculated by   subtracting unfavorable variance from budgeted sales.

The fav amounts are subtracted from the unfav amounts to get the results .

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3 0
3 years ago
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Answer:

The calculations are shown below:

Explanation:

The computation is shown below:

As we know that

Inventory turnover ratio is

= Cost of goods sold ÷ Average inventory

So

For year 2015, it is

= $1,270 ÷ $210

= 6.05 times

For year 2014, it is

= $1,560 ÷ $220

= 7.09 times

For year 2013, it is

= $2,000 ÷ $380

= 7.14 times

1-b Average days to sell inventory is computed by considering the

= Total number of days in a year ÷ inventory turnover ratio

So

For year 2015, it is

= 365 ÷ 6.05

= 60.33 days

For year 2014, it is

= 365 ÷ 7.09

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For year 2013, it is

= 365 ÷ 7.14

= 51.12 days

2. As we can see that the aegis industries inc is performing better than the Snow Pack Corporation as aegis industries has 7.14 times in 2015 as compare to the 5.5 times in 2015  

7 0
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Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by pr
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Answer:

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The alternative (the evil, dark side of the force side) results in your company being able to survive on the long term. It will not necessarily mean that your company will grow and become the world's largest shoe manufacturer, but you will be able to survive and continue to operate.

There is also a trick that you can use to avoid reputational damage and bad press, and that is to establish a foreign subsidiary in Indonesia using a different name. Then your foreign subsidiary sells you the manufactured goods, and the blame fall son the subsidiary. Believe it or not, that simple solution is used by most corporations including clothing manufacturers, electronics, toys, etc.

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Fittoniya [83]

Correct question:

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B) non durable

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Answer:

E, luxury

Explanation:

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from the above question, a luxury item that is authentic with an history behind it as well as exccellenct craftsmanship amongst other things ensure that the item is continually sold no matter what price it is.

Cheers.

4 0
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A junior marketing executive at MegaGrain Cereals suggest increasing the package size and price of its best selling brand withou
Zepler [3.9K]

Answer: True- Creating and maintaining satisfying exchange relationships

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  Yes, the given answer is true that the most of the organizations and companies are basically depend upon maintaining and also creating the various types of satisfactory exchange relationship in the business.

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According to the question, the Mega Grain's cereals is one of the company that depends upon maintaining the exchange relationship in the market by offering various types of satisfactory products to the customers.      

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