I’m trying to learn for my Management class and I’m stuck. Can you help?
Intro
2)
Use the following information to answer the questions:
Assets Liabilities and Equity Cash14,000Accounts payable19,000Marketable securities2,000Notes payable6,000Accounts receivable7,000Current liabilities25,000Inventory35,000Long-term debt95,000Current assets58,000Total liabilities120,000Machines34,000Paid-in capital20,000Real estate80,000Retained earnings32,000Net fixed assets114,000Equity52,000Total assets172,000Total liab. & equity172,000
Line itemValueSales75,000- Costs61,500- Depreciation2,000= EBIT11,500- Interest800= Taxable income10,700- Taxes3,531= Net income7,169
QUESTION
– What is the times-interest-earned ratio?
Intro
3)
Sales for the year were $168,000.
The balance sheet at the end of the year is given below:
AssetsLiabilities and EquityCash11,000Accounts payable17,000Marketable securities2,000Notes payable6,000Accounts receivable7,000Current liabilities23,000Inventory33,000Long-term debt95,000Current assets53,000Total liabilities118,000Machines34,000Paid-in capital20,000Real estate80,000Retained earnings29,000Net fixed assets114,000Equity49,000Total assets167,000Total liab. & equity167,000
QUESTION
– What is the total asset turnover ratio?
Intro
4)
Use the following information to answer the questions:
AssetsLiabilities and EquityCash9,000Accounts payable17,000Marketable securities2,000Notes payable6,000Accounts receivable4,000Current liabilities23,000Inventory42,000Long-term debt95,000Current assets57,000Total liabilities118,000Machines34,000Paid-in capital20,000Real estate80,000Retained earnings33,000Fixed assets114,000Equity53,000Total assets171,000Total liab. & equity171,000
Line itemValueSales74,000- Operating expenses60,680- Depreciation2,000= EBIT11,320- Interest800= Taxable income10,520- Taxes3,472= Net income7,048
QUESTION
– What is the return on assets (aka return on total assets)?
Intro
5)
Use the following information to answer the questions:
AssetsLiabilities and EquityCash12,000Accounts payable19,000Marketable securities4,000Notes payable8,000Accounts receivable11,000Current liabilities27,000Inventory39,000Long-term debt80,000Current assets66,000Total liabilities107,000Machines42,000Paid-in capital30,000Real estate60,000Retained earnings31,000Net fixed assets102,000Equity61,000Total assets168,000Total liab. & equity168,000
Line itemValueSales690,000Operating expenses565,800Depreciation25,000EBIT99,200Interest8,000Taxable income91,200Taxes30,096Net income61,104
The company has 30,000 shares of common stock outstanding, each currently trading at $20.9.
QUESTION
– What is the price-earnings ratio?
Intro
6)
Use the following information to answer the questions:
AssetsLiabilities and EquityCash12,000Accounts payable19,000Marketable securities4,000Notes payable8,000Accounts receivable11,000Current liabilities27,000Inventory39,000Long-term debt80,000Current assets66,000Total liabilities107,000Machines42,000Paid-in capital30,000Real estate60,000Retained earnings31,000Net fixed assets102,000Equity61,000Total assets168,000Total liab. & equity168,000
Line itemValueSales690,000Operating expenses565,800Depreciation25,000EBIT99,200Interest8,000Taxable income91,200Taxes30,096Net income61,104
The company has 30,000 shares of common stock outstanding, each currently trading at $20.9.
QUESTION
– What is the price-earnings ratio?
Intro
7)
Samsung has sales of $44,000 and a net income of $20,000. Total assets are $43,000 and total equity is $33,000.
The consumer electronics industry as a whole has the following characteristics:
RatioValueProfit margin0.137Total asset turnover0.941Equity multiplier1.8Return on equity0.232
QUESTION
– What is Samsung’s total asset turnover?
Intro
8)
A company has sales of $39,000 and total costs of $29,000, including depreciation and interest expenses. The average tax rate is 50%.
Total assets are $74,000 and total equity is $40,000.
QUESTION
– What is the total debt ratio (including all liabilities)?
Intro
9)
Use the following information to answer the questions:
AssetsLiabilities and EquityCash13,000Accounts payable21,000Marketable securities4,000Notes payable8,000Accounts receivable9,000Current liabilities29,000Inventory26,000Long-term debt80,000Current assets52,000Total liabilities109,000Machines42,000Paid-in capital30,000Real estate60,000Retained earnings15,000Net fixed assets102,000Equity45,000Total assets154,000Total liab. & equity154,000
Income statementSales430,000Operating expenses387,000Depreciation25,000EBIT18,000Interest5,000Taxable income13,000Taxes4,290Net income8,710
There are 9,000 shares outstanding, each currently trading for $8.22.
QUESTION
– What is the equity multiplier?
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