Question

what is the

A) Quick ratio

B) Sales Outstanding (assume a 365-day year)

C) Total assests turnover

D) Inventory turnover rate

E) TIE

F) Total Debt to total capital ratio

G) ROA

H) ROE

I) Profit margin

J) Return invested capital

K) Operating Margin

L) EPS

M) P/E ratio

N) Book value per share

O) Equity multiplier

DO NOT ROUND INTERMEDIATE CALCULATIONS

Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not 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 2018 Cash and securities Accounts receivable Inventories $3,000 15,000 18,000 $36,000 $24,000 $60,000 Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable $18,630 8,370 Accruals 6,000 Notes payable Total current liabilities $33,000

Answer 1

Answer to Part A.
Quick Ratio = (Current Assets – Inventories) / Current Liabilities
Quick Ratio = ($36,000 - $18,000) / $33,000
Quick Ratio = 0.55 times

Answer to Part B.
Sales Outstanding = 365 * Accounts Receivable / Sales
Sales Outstanding = 365 * $15,000 / $84,000
Sales Outstanding = 65.18 days

Answer to Part C.
Total Assets Turnover = Sales / Total Assets
Total Assets Turnover = $84,000 / $60,000
Total Assets Turnover = 1.40 times

Answer to Part D.
Inventory Turnover Rate = Sales / Inventory
Inventory Turnover Rate = $84,000/ $18,000
Inventory Turnover Rate = 4.67 times

Answer to Part E.
Times Interest Earned = EBIT / Interest Expense
Times Interest Earned = $4,200 / $900
Times Interest Earned = 4.67 times