Question

A firm has $61,300 in receivables and $391,400 in total assets. The firm has a total asset turnover rate of 1.4 and a profit margin of 6.3 percent. What is the days’ sales in receivables?

Peter Inc. has sales of $489,700. Earnings before interest and taxes are equal to 16 percent of sales. For the period, the firm paid $5,200 in interest. The tax rate is 28 percent. What is the profit margin?

Answer #1

A firm has $61,300 in receivables and $391,400 in total assets.
The firm has a total asset turnover rate
of 1.4 and a profit margin of 6.3 percent. What is the days’
sales in receivables?
Peter Inc. has sales of $489,700. Earnings before interest and
taxes are equal to 16 percent of sales.
For the period, the firm paid $5,200 in interest. The tax rate
is 28 percent. What is the profit margin?

A. A firm has $12,900 in receivables and $411,800 in total
assets. The total asset turnover rate is 1.95 and the profit margin
is 14.2 percent. How long on average does it take the firm to
collect its receivables?
Group of answer choices
11.43 days
5.86 days
31.92 days
80.52 days
62.25 days
B. Cross Hairs Gun Shop has sales of $12,189,000, a profit
margin of 2.8 percent, and a capital intensity ratio of 0.49. What
is the return on...

Lansing Incorporated has $16,197 in total assets, depreciation
of $2,179, and interest of $3,128. The total asset turnover rate is
1.8. Earnings before interest and taxes is equal to 35 percent of
sales. What is the cash coverage ratio?

A firm has been experiencing low profitability in recent years.
Perform an analysis of the firm's financial position using the
DuPont equation. The firm has no lease payments but has a $1
million sinking fund payment on its debt. The most recent industry
average ratios and the firm's financial statements are as
follows:
Industry Average Ratios
Current ratio
2
×
Fixed assets turnover
6
×
Debt-to-capital ratio
17
%
Total assets turnover
3
×
Times interest earned
5
×
Profit...

1. Firestone company has EBIT of $10,350 and NI of
$2,528.50. The tax rate is 35%. What is the Interests coverage
ratio?
2. If the days of sales in inventory for British
company is 31 days and the days of sales outstanding is 22 days.
What is the inventory turnover rate?
3. If the average selling period for American Eagle
company is 85 days, and the cost of goods sold for the year are
$1,250,000. What is the average value...

Which of the following is false?
Group of answer choices
Cashman chicken has current liabilities of $350,000, a quick
ratio of 1.65, inventory turnover of 4.4, and a current ratio of
2.9. Then, the cost of goods sold is $1,925,000.
Harrison steel has a total debt to equity ratio of .90. Return
on assets is 8.5 percent, and total equity is $500,000. Then, the
net income is $80,750.
HCC Inc. has net income of $161,000, a net profit margin of...

A firm has been experiencing low profitability in recent years.
Perform an analysis of the firm's financial position using the
DuPont equation. The firm has no lease payments but has a $3
million sinking fund payment on its debt. The most recent industry
average ratios and the firm's financial statements are as
follows:
Industry Average Ratios
Current ratio
3.21x
Fixed assets turnover
5.38x
Debt-to-capital ratio
19.99%
Total assets turnover
2.87x
Times interest earned
2.92x
Profit margin
2.07%
EBITDA coverage
4.03x...

Vintage, Inc. has a total asset turnover of 0.64 and a net
profit margin of 3.23 percent. The total assets to equity ratio for
the firm is 2.0. Calculate Vintage’s return on equity.

A firm has total asset turnover of 1.25. All assets and accounts
payable vary directly with sales. Debt and equity do not vary with
sales. Current sales are $1,000 and are expected to grow 10% over
the year. Accounts payable are 1% of assets. The firm’s net profit
margin is 6% and it expects to pay dividends in the amount of
$10.
Calculate the firm’s External Financing Need

1) Coventry Comfort, Inc. has equity of $168,500, total assets
of $195,000, net income of $63,000, and dividends of $37,800.
Calculate the sustainable growth
rate?
2) Delta Ice has a profit margin of 8.3 percent and a payout
ratio of 42 percent. The firm has annual sales of $386,400, current
liabilities of $37,200, long-term debt of $123,800, and net working
capital of $16,700, and net fixed assets of $391,500. No external
equity financing is possible. What is the internal growth...

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