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3 years ago

Use the information from the balance sheet and income statement below to calculate the following ratios:

Business

1 answer:

Marina86 [1]3 years ago

4 0

Answer:

a. Current Ratio = current assets / current liabilities = 190,000 / 153,000 = 1.24

b. Acid-test ratio = (current assets - inventory) / current liabilities = (190,000 - 50,000) / 153,000 = 0.92

c. Times interest earned = EBIT / interest expense = 65,000 / 8,000 = 8.13

d. Inventory turnover = COGS / inventory = 90,000 / 50,000 = 1.8

e. Total asset turnover = net sales / total assets = 210,000 / 525,000 = 0.4

f. Operating profit margin = operating income / total sales = 65,000 / 210,000 = 0.31

g. Days in receivables = (accounts receivables / total sales) x 365 = (30,000 / 210,000) x 365 = 52.14 days

h. Operating return on assets = operating income / total assets = 65,000 / 525,000 = 0.12

i. Debt ratio = total liabilities / total assets = 273,000 / 525,000 = 0.52

j. Fixed asset turnover = total sales / fixed assets = 210,000 / 335,000 = 0.63

k. Return on equity = net income / total equity = 45,030 / 252,000 = 0.18

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2 years ago

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Kaylis [27]

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The correct answer is option A.

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4 years ago

An indium-gallium-arsenide-nitrogen alloy developed at Sandia National Laboratory is said to have potential uses in electricity-

IceJOKER [234]

Answer:

Rate of return 9.1864%

Explanation:

Scenario description:

using the new alloy, will extend the life of a telecommunication satellite thus, more years for the porject life.

We need to calcualte the rate at which the extra revenues in years 11 through 15 equalize the extra cost of 870,000 at F0

each extra revenue will be considered a lump sum, we will add them and check the present value.

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 450,000 500,000 550,000 600,000 650,000

time 11.00 12.00 13.00 14.00 15.00

rate : ??

As this is a complex equation the human way to solve this is with trial an error.

Also, we could solve this with a financial calcualtor or excel.

We are going to use the latter.

you will do as follow:

from A1 to A5 write the maturity values

from B1 to B5 write the time

on c1 write 0.1 this will be the first rate we will build the formulas and then, excel will solve for the answer:

on D1 you will write:

=A1/power(1+$C$1,B1)

Thisformula calculates the presnet value of the additional revenues

then drag this up to D5

on D6 =sum(D1:D5) this add them

Then select d6 goo to goal seek and define it as 870,000 changing the cell C1

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3 years ago

Under absorption costing, a company had the following unit costs when 9,000 units were produced. Direct labor $ 7.25 per unit Di

tekilochka [14]

Answer:

$23.45 per unit

Explanation:

Given that,

Units produced = 9,000 units

Direct labor = $7.25 per unit

Direct material = $8.00 per unit

Variable overhead = $5.50 per unit

Total production cost = $28.25 per unit

Fixed overhead:

= $67,500 ÷ 25,000 units

= $2.70 per unit

Total product cost per unit:

= Direct material cost per unit + Direct labor cost per unit + Variable overhead cost per unit + Fixed overhead

= $8.00 per unit + $7.25 per unit + $5.50 per unit + $2.70 per unit

= $23.45 per unit

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3 years ago