a)
particulars | Current | Expected | remarks |
Net income | 35000 | 35000 | no change |
common equity | 686140 | 107590 | =686140-578550=107590 |
ROE | 5.10% | 32.53% | =net income/common equity |
Change in ROE | 5.38% | =32.53-5.10/5.10 |
b)
Cash | 50750 | |
receivable | 194880 | |
Quick assets(Cash +receivable) | 245630 | |
Accounts payable | 97440 | |
Other current liabilities (notes payable) | 78155 | |
Current Liabilities (accounts payable +notes payable) | 175595 | |
Quick Ratio =Quick assets/current liability | 1.3988 |
eBook Problem Walk-Through Lloyd Inc. has sales of $350,000, a net income of $35,000, and the...
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