Solved by verified expert :Q10. The following data applies to Kaiser company(millions of dollars):
Cash & marketable securities
$ 100
Fixed assets
$283.5
Sales
$1,000
Net income
$50
Quick ratio
2.0x
Current ratio
3.0x
DSO (average collection period)*
40 days
ROE
12%
*Calculation is based on a 360 day year.
Kaiser has no preferred stock – only common equity, current liabilities,
and long-term debt.
Find Kaiser’s (1) accounts
receivable (A/R), (2) current
liabilities, (3) current assets,
(4) total assets, (5) ROA, ( 6 ) common equity, and (7) long-term debt.
Q11. Ace industries have current assets equal to Rs. 3 Million. The
company’s current ratio is 1.5, and its quick ratio is 1.0.
a) What is the firm’s level of current
liabilities?
b) What is the firm’s level of inventories?
Q12.Complete the balance sheet and sales information in the table that
follows for Hoffmeister Industries using the following financial data:
Debt ratio: 50%
Quick ratio: 0.80x
Total assets turnover: 1.5x
Days sales outstanding / average collection period: 36 days*
Gross profit margin on sales: (sales – cost of goods sold)/sales = 25%
Inventory turnover ratio: 5x
*Calculation is based on a 360 day year.
Balance Sheet
Assets
$
Liabilities & Equity
$
Cash
Accounts payable
Accounts receivable
Long-term debt
60,000
Inventory
Common stock
Fixed assets
Retained earnings
97,500
Total Assets
300,000
Total Liabilities & Equity
Sales
Cost of Goods Sold
