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fin 631

smail-zita
smail-zita 


Given the following information, calculate: (a) current ratio, (b) quick/acid-test ratio, (c) Total debt or leverage ratio, (d) Return on Assets, (e) Net Margin, (f) Return on Equity, (g) Asset Turnover, (h) Earnings Retention Ratio SUMMARY BALANCE SHEET ASSETS LIABILITIES & SH EQUITY Cash & Equivalents $2,000 Accounts Payable $6,000 Accounts Receivable 7,000 Notes Payable 4,000 Inventory 5,000 Current Liabilities $10,000 Current Assets $14,000 Prepaid Expense $2,000 Long-term Debt $9,000 P, P & E (net) $20,000 SH Equity $17,000 Total Assets $36,000 Total Liab & SH Eq $36,000 SUMMARY OPERATING PERFORMANCE Sales $50,000 Net Income 5,400 Dividends Paid 1,350 Attachments Tags
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fin631 Answer

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...income / SH equity = 5,400 / 17,000 = 31.76%






Asset turnover = Sales / Total assets = 50,000 / 36,000 = 1.39






Earnings retention ratio = 1 - Dividends / Net Income = 1 - 1,350/5,400 = 0.75
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