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solniwko [45]
2 years ago
15

Suppose the 2020 adidas financial statements contain the following selected data (in millions). Current assets $4,575 Interest e

xpense $200 Total assets 9,000 Income taxes 178 Current liabilities 3,050 Net income 236 Total liabilities 5,670 Cash 800 Compute the following values. (a) Working capital. $ millions (b) Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) :1 (c) Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.) % (d) Times interest earned.
Business
1 answer:
Goryan [66]2 years ago
4 0

Answer:

a. $1,525 million

b. 1.50 times

c. 29 %

Explanation:

Working capital = Current Assets - Current Liabilities

                          = $4,575 million - $3,050 million

                          = $1,525 million

Current Ratio = Current Assets ÷ Current Liabilities

                       = $4,575 million ÷ $3,050 million

                       = 1.50 times

Debt to Asset ratio = Interest bearing  Debt / Total Assets × 100

                               = ($ 5,670 - $3,050) / $9,000 × 100

                               = 29 %

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$239,060

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allowance     $42,000                  $42,000                            $400,000

Interest

on capital     $4,410   $10,290      $14,700                            $385,300

left amount  $192,650 $192,650  $385,300                        $0

Net income  $239,060

8 0
3 years ago
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Josephine quits her $40,000 a year job to start her own business. She rents an office for $15,000 a year, pays wages and salarie
Sliva [168]

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b. $51,000 and $5000.

Explanation:

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Implicit cost (opportunity cost) = $40,000 + $6,000 = $46,000

So, we can calculate accounting profit and economic profit by using following formula,

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3 0
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A company had the following cash flows for the year:
pychu [463]

Answer:

The amount would be reported for net financing cash flows on the Statement of Cash Flows: 1) $155,000

Explanation:

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