Homework Answers
1. (A) Debentures are backed only by the borrower's promise to pay.
A bond is secured by a specific physical asset and a mortgage bond is also secured by something that has value and can be sold to pay the bondholders if the company defaults on payment of that bond.
So the answer is (A) Debentures
2. (i) ROI or Return On Investment.
(ii) ROE or Return On Equity.
3.Whenever ROA is positive, ROE is greater than ROA because of the "multiplier" effect of the ROE.
ROA :- Return On Assets
ROE:- Return On Equity
4. Formula for Earning Per Share.(EPS)
1 1 2 3 4 as se? 11. Every expense accrual, including payroll, has the same...
1 1 2 3 4 as se? 11. Every expense accrual, including payroll, has the same effect and because the expense. 12. When is a company required to record warranty expense? Which of the following bonds are backed only by the borrower's promise to pay? 1 A. Debentures В. Secured bonds C. Mortgage bonds 1. Corporate bonds that can be converted into the issuing company's stock are called of 2. A lease that transfers ownership of the asset to the...
Q-1 CLASSIFICIATON OF FINANCIAL RATIOS Indicate whether each of the following financial ratios would be classified...
Q-1 CLASSIFICIATON OF FINANCIAL RATIOS Indicate whether each of the following financial ratios would be classified as a test of profitability, liquidity, or solvency or a market test when performing ratio analysis Tests of Profitabilit Tests of Liquidity Tests ofMarket Tests Financial Ratios Turnover Ratio Cash Coverage Ratio ash Ratio t Ratio Average Age of Receivables Average Days' Supply in Inventory bt-to-Equity Ratio ings per Share (EPS) Financial Leverage Percentage Fixed Asset Turnover Ratio nventory Turnover Ratio e/ Earnings (P/E)...
Easy Problems 1-6 4-1 DAYS SALES OUTSTANDING $7 300,000. What is its accounts receivable balance? Assume...
Easy Problems 1-6 4-1 DAYS SALES OUTSTANDING $7 300,000. What is its accounts receivable balance? Assume DEBT TO CAPITAL RATIO is $14 per share and it has 5 million shares outstanding, The firm's total capital is $125 million and it finances with only debt and common equity. What is its d DuPONT ANALYSIS ROE of 15%. What is its total assets turnover? what is its equity multiplier? Baker Brothers has a DSO of 40 days, and its annual sales are...
QUE// 1(a) ZIPBIT common stock is selling at a P/E of 10 times trailing earnings ....
QUE// 1(a) ZIPBIT common stock is selling at a P/E of 10 times trailing earnings . The stock price is $23.50. what were the firms earnings per share . 1(b) PEGCOR has a P/E ratio of 1.5 . Earnings per share are $ 2.00 and the expressed EPS five years from today is $ 3.22 . Calculate the PEG ratio.
Calculator Profitability Ratios Current Year Prior Year Total Assets $ 1,810,236 $ 1,659,152 Total Liabilities $...
Calculator Profitability Ratios Current Year Prior Year Total Assets $ 1,810,236 $ 1,659,152 Total Liabilities $ 669,328 $ 759,244 Total Equity $ 1,140,908 $ 899,908 Shares Shares Preferred Stock 10,850 9,850 Common Stock 45,928 45,928 Market Price-Common Stock $ 42.67 Net Income $ 150,000 Interest Expense $ 20,000 Preferred Dividends $ 9,000 Calculate the following for the Current Year based on the information abo (Round percent to one place past the decimal. Do not enter % symbol. Example: ROA (Return...
1. Baxley Brothers has a DSO of 15 days, and its annual sales are $4,015,000. What...
1. Baxley Brothers has a DSO of 15 days, and its annual sales are $4,015,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest cent. $ 2. Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $14 per share and it has 5 million shares outstanding. The firm's total capital is $140 million and it finances with only debt and common equity. What is its debt-to-capital...
there are 5 photos Au bolcuole Normal No Spacing Heading 1 Yux Construction Company Financial Stat....
there are 5 photos
Au bolcuole Normal No Spacing Heading 1 Yux Construction Company Financial Stat. Balance sheet 2018 2017 Formulae Current ratio Current assets/Current 585,632 878,000 $7,282 632,160 Liabilities Aucts Cash Account receivable (A/R) Inventories Total current Asset Gross Fixed Assets Less: Depreciation Net Fixed Assef Total Asset 1.716,480 2,680,112 1,197,160 380,120 817,040 3,497,152 1,287,360 1,926,802 1,202,950 263,160 939,790 2,866,592 Inv. turnover - Sales / Inventories FA turnover - Sales / Net fixed assets TA turnover = Sales /...
please show all work Problem #3 (P/E and EPS): Tom's management team is very concerned about...
please show all work
Problem #3 (P/E and EPS): Tom's management team is very concerned about its company's price earnings ratio and carings per share. 1. Calculate the earnings per share and the P/E ratio for Tom's. 2. Assume that Whole Food's EPS is $2.25 per share and the P/E ratio is 10x. Compare Tom's ratios to Whole Food's. What conclusions can you draw? Income Statement (Millions of $) Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable...
what is the A) Quick ratio B) Sales Outstanding (assume a 365-day year) C) Total assests...
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...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash • What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income...
1 1 2 3 4 as se? 11. Every expense accrual, including payroll, has the same effect and because the expense. 12. When is a company required to record warranty expense? Which of the following bonds are backed only by the borrower's promise to pay? 1 A. Debentures В. Secured bonds C. Mortgage bonds 1. Corporate bonds that can be converted into the issuing company's stock are called of 2. A lease that transfers ownership of the asset to the...
Q-1 CLASSIFICIATON OF FINANCIAL RATIOS Indicate whether each of the following financial ratios would be classified as a test of profitability, liquidity, or solvency or a market test when performing ratio analysis Tests of Profitabilit Tests of Liquidity Tests ofMarket Tests Financial Ratios Turnover Ratio Cash Coverage Ratio ash Ratio t Ratio Average Age of Receivables Average Days' Supply in Inventory bt-to-Equity Ratio ings per Share (EPS) Financial Leverage Percentage Fixed Asset Turnover Ratio nventory Turnover Ratio e/ Earnings (P/E)...
Easy Problems 1-6 4-1 DAYS SALES OUTSTANDING $7 300,000. What is its accounts receivable balance? Assume DEBT TO CAPITAL RATIO is $14 per share and it has 5 million shares outstanding, The firm's total capital is $125 million and it finances with only debt and common equity. What is its d DuPONT ANALYSIS ROE of 15%. What is its total assets turnover? what is its equity multiplier? Baker Brothers has a DSO of 40 days, and its annual sales are...
Calculator Profitability Ratios Current Year Prior Year Total Assets $ 1,810,236 $ 1,659,152 Total Liabilities $ 669,328 $ 759,244 Total Equity $ 1,140,908 $ 899,908 Shares Shares Preferred Stock 10,850 9,850 Common Stock 45,928 45,928 Market Price-Common Stock $ 42.67 Net Income $ 150,000 Interest Expense $ 20,000 Preferred Dividends $ 9,000 Calculate the following for the Current Year based on the information abo (Round percent to one place past the decimal. Do not enter % symbol. Example: ROA (Return...
there are 5 photos
Au bolcuole Normal No Spacing Heading 1 Yux Construction Company Financial Stat. Balance sheet 2018 2017 Formulae Current ratio Current assets/Current 585,632 878,000 $7,282 632,160 Liabilities Aucts Cash Account receivable (A/R) Inventories Total current Asset Gross Fixed Assets Less: Depreciation Net Fixed Assef Total Asset 1.716,480 2,680,112 1,197,160 380,120 817,040 3,497,152 1,287,360 1,926,802 1,202,950 263,160 939,790 2,866,592 Inv. turnover - Sales / Inventories FA turnover - Sales / Net fixed assets TA turnover = Sales /...
please show all work
Problem #3 (P/E and EPS): Tom's management team is very concerned about its company's price earnings ratio and carings per share. 1. Calculate the earnings per share and the P/E ratio for Tom's. 2. Assume that Whole Food's EPS is $2.25 per share and the P/E ratio is 10x. Compare Tom's ratios to Whole Food's. What conclusions can you draw? Income Statement (Millions of $) Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable...
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...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash • What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income...
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