Question

Income Statement:                                       &nbs

Income Statement:                                                          Balance Sheet

Sales       100                                                                     Cash 30

-Costs      50                                                                       Acc. Rec. 10

EBIT         50                                                                       Inventory 10

-int.          5                                                                         Total CA

EBT          45                                                                      Gross PPE   500

-tax           18                                                                       - Deprec. 50

Net Inc.    27                                                                     Net PPE   450

                                                                                           Total Assets    500

                                                                                            Acct. Pay. 10

                                                                                            Accurals 20

                                                                                            Total CL 30

                                                                                            Bonds 50

                                                                                            Stock   300

                                                                                            R.E. 120

                                                                                            Total Fin. 500            

What is the DSO for this firm?

What is the ROE for this firm?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Days Sales Outstanding (DSO)

Days Sales Outstanding (DSO) = Accounts Receivables / Credit Sales per day

Accounts Receivables = $10

Credit Sales per day = Credit sales / 365 Days

= $100 / 365 Days

= $0.2740 per day

Therefore, the Days Sales Outstanding (DSO) = Accounts Receivables / Credit Sales per day

= $10 / $0.2740

= 36.50 Days

“Days Sales Outstanding (DSO) = 36.50 Days”

Return on Equity (ROE)

Return on Equity (ROE) = (Net Income / Total Stockholders’ Equity) x 100

= [$27 / ($300 + $120)] x 100

= [$27 / $420] x 100

= 6.43%

“Return on Equity (ROE) = 6.43%”

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
USE THE INCOME STATEMENT AND BALANCE SHEET SHOWN BELOW TO DEVELOP THE STATEMENT OF CASH FLOW...
USE THE INCOME STATEMENT AND BALANCE SHEET SHOWN BELOW TO DEVELOP THE STATEMENT OF CASH FLOW YEAR T + 1 Revenue $5700 COGS $4560 Gross Profit $1140 Operating expenses $500 Depreciation $27 Ebit $613 Interest Expenses $35 EBT $578 Taxes $231.20 NI $346.80 Dividends $0 CHANGE IN RE $346.80 BALANCE SHEET YEAR T + 1                                 YEAR T CASH AND EQUIVALENTS -                              $714.80.                                       $120 ACCOUNTS RECEIVABLE -                               $500                                               $500 INVENTORY -                                                   $300                                                $340 TOTAL CURRENT ASSETS -                             ...
A company has the following income statement and balance sheet: INCOME STATEMENT Sales $1,000 Costs 600...
A company has the following income statement and balance sheet: INCOME STATEMENT Sales $1,000 Costs 600 Depreciation 240 EBIT $ 160 Interest expenses 60 EBT $ 100 Taxes (40%) 40 Net income $ 60 BALANCE SHEET Cash $ 20 Accounts payable $ 30 Short-term investments 30 Accruals 50 Accounts receivable 20 Notes payable 10 Inventory 60 Current liabilities 90 Current assets 130 Long-term debt 70 Gross fixed assets 140 Common stock 30 Accumulated deprec. 40 Retained earnings 40 Net fixed...
Cash                             10            Acc
Cash                             10            Accounts Payable                       6 Receivables                   12            Notes payable                             8 Inventories                    50            Other Current Liabilities          4 Total CA                        72               Total CL                                 18                                                                  L-T debt                          78 Net Fixed Assets           44             Common Equity                        20 Total Assets        116      Total L+E                116    Income Statement (year ended Dec 31, 2019—in $) Sales                                                                                                                              2,000 Cost of Goods Sold (materials, labor, heat, light, power, indirect labor, dep.)   500                              Gross Profit                                                                                                                    1,500 SGA Expenses                                                                                                                    700             EBIT                                                                                                                       800 Interest Expense                                                                                                    30             EBT                                                                                                                        770 Taxes (30%)                                                                                                                       231 Net Income                                                                                                                539 Using the data from the balance sheet and income statement above for the FY20 company, calculate the following ratios:...
Below are the 2019 income statement and balance sheet of Happy water, Inc. Assuming the company's...
Below are the 2019 income statement and balance sheet of Happy water, Inc. Assuming the company's fixed assets are operating at 100% capacity and the company expect 20% growth in sales in 2020. If the tax rate and payout ratio in 2020 are the same as those in 2019, what is the external financing needs in 2020? Income Statement 2019 Sales 150 Costs 100 EBIT 50 Interest exp. 10 EBT 40 Tax 8 NI 32 Dividends 16 RE 16 Balance...
Below are the 2019 income statement and balance sheet of Happy water, Inc. Assuming the company's...
Below are the 2019 income statement and balance sheet of Happy water, Inc. Assuming the company's fixed assets are operating at 100% capacity and the company expect 20% growth in sales in 2020. If the tax rate and payout ratio in 2020 are the same as those in 2019, what is the external financing needs in 2020? Income Statement 2019 Sales 150 Costs 100 EBIT 50 Interest exp. 10 EBT 40 Tax 8 NI 32 Dividends 16 RE 16 Balance...
QUESTION 8 The balance sheet and income statement shown below are for Koski Inc. Note that...
QUESTION 8 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2016 Cash and marketable securities $2,245 Accounts receivable 9,870 Inventories 10,480 Total current assets $22,595 Net plant and equipment $65,405 Total assets $88,000 Liabilities and Equity...
Input Tesla, Inc. 2017 Income Statement Other Inputs Sales        40,259,230 Tax rate 40% COGS       ...
Input Tesla, Inc. 2017 Income Statement Other Inputs Sales        40,259,230 Tax rate 40% COGS        29,336,446 Growth rate 15% Other expenses           5,105,100 Capacity Utilization 100% Depreciation           1,804,220 EBIT           4,013,464 Interest              630,520 Taxable income           3,382,944 Taxes (40%)           1,353,178 Net income           2,029,766 Dividends              610,000 Add to RE           1,419,766 Tesla, Inc. Balance Sheet as of December 2017 Assets Liabilities & Equity Current Assets Current Liabilities    Cash              456,435    Accounts Payable          ...
I would need a cash flow statement ONLY for the period ending December 31 2010 PLEASE!...
I would need a cash flow statement ONLY for the period ending December 31 2010 PLEASE! Income Statements $MM 2009 2010 2011 2012 2013 Revenue Cost of goods sold Gross profit 404 (188) 216 364 (174) 190 425 (206) 219 511 (247) 264 604 (293) 310 Sales Sales Administrations Depreciation EBIT (67) (61) (27) 61 (66) (59) (27) 38    (83) (59) (34) 42 (102) (66) (38) 58 (121) (79) (39) 71 Interest expenses Pre tax income Income tax Net...
The balance sheet and income statement shown below. Note that the firm has no amortization charges,...
The balance sheet and income statement shown below. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2019 Cash and securities $ 2,500 Accounts receivable 11,500 Inventories 16,000 Total current assets $30,000 Net plant and equipment $20,000 Total assets $50,000 Liabilities and Equity Accounts payable $ 9,500 Accruals 5,500...
The 2016 balance sheets and the 2017 forecasted (pro-farma) balance sheet for McMurphy and Associates ,...
The 2016 balance sheets and the 2017 forecasted (pro-farma) balance sheet for McMurphy and Associates , Inc. appears below. All figures are in millions of U.S. dollar. The firm plans to pay common dividends of $100 million in 2017. Which of the following actions would NOT contribute to the balancing of the 2017 forecasted balance sheet? Assets 2016 Input Basis for 2017 Forecast 2017 Cash $20 1% ×   2017 Sales $22 Accts. rec. $280 14% ×   2017 Sales $308 Inventories...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT