RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $350,000, a net income of...
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RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $350,000, a net income of $31,500, and the following balance sheet:
The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2x, without affecting sales or net income.
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RETURN ON EQUITY AND QUICK RATIO
Lloyd Inc. has sales of $350,000, a net income of...
RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $350,000, a net income of...
RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $350,000, a net income of $31,500, and the following balance sheet: Cash $64,400 Accounts payable $45,360 Receivables 76,720 Notes payable to bank 23,520 Inventories 330,400 Total current liabilities $68,880 Total current assets $471,520 Long-term debt 77,840 Net fixed assets 88,480 Common equity 413,280 Total assets $560,000 Total liabilities and equity $560,000 The new owner thinks that inventories are excessive and can be lowered...
RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $600,000, a net income of...
RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $600,000, a net income of $54,000, and the following balance sheet: Cash $97,680 Accounts payable $126,720 Receivables 208,560 Notes payable to bank 87,120 726,000 Total current liabilities $213,840 Inventories Total current assets 224,400 $1,032,240 287,760 Long-term debt Common equity Net fixed assets 881,760 Total assets $1,320,000 Total liabilities and equity $1,320,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current...
Return on Equity and Quick Ratio Lloyd Inc. has sales of $350,000, a net income of...
Return on Equity and Quick Ratio Lloyd Inc. has sales of $350,000, a net income of $42,000, and the following balance sheet: Cash Receivables Inventories Net fixed assets Total assets The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.25x, without affecting sales or net income a. If inventories are sold and not replaced (thus reducing the current ratio to 2.25x), if the funds...
eBook Problem Walk-Through Lloyd Inc. has sales of $350,000, a net income of $35,000, and the...
eBook Problem Walk-Through Lloyd Inc. has sales of $350,000, a net income of $35,000, and the following balance sheet: Cash $50,750 Accounts payable $97,440 Receivables 194,880 Notes payable to bank 78,155 Inventories 578,550 Total current liabilities $175,595 Total current assets $824,180 Long-term debt 153,265 Net fixed assets 190,820 Common equity 686,140 Total assets $1,015,000 Total liabilities and equity $1,015,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal...
Lloyd Inc. has sales of $400,000, a net income of $24,000, and the following balance sheet:...
Lloyd Inc. has sales of $400,000, a net income of $24,000, and the following balance sheet: Cash $ 72,960 Accounts payable $ 99,840 Receivables 155,520 Notes payable to bank 71,040 Inventories 345,600 Total current liabilities $170,880 Total current assets $574,080 Long-term debe 167,040 Net fixed assets 385,920 Common equity 622,080 Total assets $960,000 Total liabilities and equity $960,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to...
Lloyd Inc. has sales of $450,000, a net income of $45,000, and the following balance sheet:...
Lloyd Inc. has sales of $450,000, a net income of $45,000, and the following balance sheet: Cash $67,500 Accounts payable $60,075 Receivables 124,200 Notes payable to bank 39,150 Inventories 330,750 Total current liabilities $99,225 Total current assets $522,450 Long-term debt 84,375 Net fixed assets 152,550 Common equity 491,400 Total assets $675,000 Total liabilities and equity $675,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry...
Lloyd Inc. has sales of $150,000, a net income of $10,500, and the following balance sheet:...
Lloyd Inc. has sales of $150,000, a net income of $10,500, and the following balance sheet: Cash $42,000 Accounts payable $38,250 Receivables 60,000 Notes payable to bank 20,625 Inventories 172,500 Total current liabilities $58,875 Total current assets $274,500 Long-term debt 49,500 Net fixed assets 100,500 Common equity 266,625 Total assets $375,000 Total liabilities and equity $375,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry...
eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $7,000, and the...
eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $7,000, and the following balance sheet: Cash $ 17,400 Accounts payable $ 31,030 Receivables 49,010 Notes payable to bank 15,950 Inventories 130,500 Total current liabilities $ 46,980 Total current assets $196,910 Long-term debt 48,140 Net fixed assets 93,090 Common equity 194,880 Total assets $ 290,000 Total liabilities and equity $ 290,000 The new owner thinks that inventories are excessive and can be lowered to the point where...
Quick Ratio Smith and Sons, Inc. Income Statement (in millions) 2016 2015 Net sales 10,150 9,650 Cost of goods sold (5,...
Quick Ratio Smith and Sons, Inc. Income Statement (in millions) 2016 2015 Net sales 10,150 9,650 Cost of goods sold (5,500) (5,200) Gross profit 4,650 4,450 Selling and administrative expenses (2,800) (2.700) Income from operations 1,850 1.750 Interest expense (300) (250) Income before income taxes 1,550 1,500 Income tax expense (420) (400) Net income 1,130 1,100 Smith and Sons, Inc. Balance Sheet (in millions) 2016 2015 Assets Current assets Cash and cash equivalents 300 500 Accounts receivable 900 800 Inventory...
SME Company has a debt-equity ratio of 57. Return on assets is 7.9 percent, and total...
SME Company has a debt-equity ratio of 57. Return on assets is 7.9 percent, and total equity is $620,000 a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round your...
RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $600,000, a net income of $54,000, and the following balance sheet: Cash $97,680 Accounts payable $126,720 Receivables 208,560 Notes payable to bank 87,120 726,000 Total current liabilities $213,840 Inventories Total current assets 224,400 $1,032,240 287,760 Long-term debt Common equity Net fixed assets 881,760 Total assets $1,320,000 Total liabilities and equity $1,320,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current...
Return on Equity and Quick Ratio Lloyd Inc. has sales of $350,000, a net income of $42,000, and the following balance sheet: Cash Receivables Inventories Net fixed assets Total assets The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.25x, without affecting sales or net income a. If inventories are sold and not replaced (thus reducing the current ratio to 2.25x), if the funds...
eBook Problem Walk-Through Lloyd Inc. has sales of $350,000, a net income of $35,000, and the following balance sheet: Cash $50,750 Accounts payable $97,440 Receivables 194,880 Notes payable to bank 78,155 Inventories 578,550 Total current liabilities $175,595 Total current assets $824,180 Long-term debt 153,265 Net fixed assets 190,820 Common equity 686,140 Total assets $1,015,000 Total liabilities and equity $1,015,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal...
Lloyd Inc. has sales of $400,000, a net income of $24,000, and the following balance sheet: Cash $ 72,960 Accounts payable $ 99,840 Receivables 155,520 Notes payable to bank 71,040 Inventories 345,600 Total current liabilities $170,880 Total current assets $574,080 Long-term debe 167,040 Net fixed assets 385,920 Common equity 622,080 Total assets $960,000 Total liabilities and equity $960,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to...
eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $7,000, and the following balance sheet: Cash $ 17,400 Accounts payable $ 31,030 Receivables 49,010 Notes payable to bank 15,950 Inventories 130,500 Total current liabilities $ 46,980 Total current assets $196,910 Long-term debt 48,140 Net fixed assets 93,090 Common equity 194,880 Total assets $ 290,000 Total liabilities and equity $ 290,000 The new owner thinks that inventories are excessive and can be lowered to the point where...
Quick Ratio Smith and Sons, Inc. Income Statement (in millions) 2016 2015 Net sales 10,150 9,650 Cost of goods sold (5,500) (5,200) Gross profit 4,650 4,450 Selling and administrative expenses (2,800) (2.700) Income from operations 1,850 1.750 Interest expense (300) (250) Income before income taxes 1,550 1,500 Income tax expense (420) (400) Net income 1,130 1,100 Smith and Sons, Inc. Balance Sheet (in millions) 2016 2015 Assets Current assets Cash and cash equivalents 300 500 Accounts receivable 900 800 Inventory...
SME Company has a debt-equity ratio of 57. Return on assets is 7.9 percent, and total equity is $620,000 a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round your...
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