Exercise n°6.Consider this simplified balance sheet for Geomorph Trading:Current liabilitiesLong-term debtOther liabilitiesEquityCurrent assets$ 100$ 60Long-term assets50028070190$ 600$ 600a. Calculate the ratio of debt to equity. (Round your answer to 2decimal places.)b-1. What are Geomorph's net working capital and total long-term capital?b-2. Calculate the ratio of debt to total long-term capital. (Roundyour answer to 2 decimal places.)Exercise n°7.Magic Flutes has total receivables of $3,000, which represent 20 days'sales. Total assets are $75,000. The firm's operating profit margin is5%. Assume a 365-day year.3/4a. What is the firm's sales-to-assets ratio? (Round your answer to 2decimal places.)b. What is the firm's return on assets? (Do not round intermediatecalculations. Enter your answer as a percent rounded to 2 decimalplaces.)Exercise n°8.a. If a firm's assets of $10,000 represent 200 days' sales, what is itsannual sales? Assume a 365-day year.b. What is its asset turnover ratio?

Thank you for the question. Post has multiple questions. As per company guidelines expert can answer…

Consider this simplified balance sheet for Geomorph Trading: Current assetS $ 100 Current liabilities $ 60 280 Long-term assets 500 Long-term debt Other liabilities 70 190 Equity $ 600 $ 600 a. Calculate the ratio of debt to equity. (Round your answer to 2 decimal places.) b-1. What are Geomorph's net working capital and total long- term capital? b-2. Calculate the ratio of debt to total long-term capital. (Round your answer to 2 decimal places.)

Consider this simplified balance sheet for Geomorph Trading: Current assetS $ 100 Current liabilities $ 60 280 Long-term assets 500 Long-term debt Other liabilities 70 190 Equity $ 600 $ 600 a. Calculate the ratio of debt to equity. (Round your answer to 2 decimal places.) b-1. What are Geomorph's net working capital and total long- term capital? b-2. Calculate the ratio of debt to total long-term capital. (Round your answer to 2 decimal places.)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter9: Projecting Financial Statements

Section: Chapter Questions

Problem 3bM

See similar textbooks

Similar questions

Assume that you are given the following ratios: Asset turn-over: -1.5x Return on Assets: -3% Return on equity: -5% What is the debt ratio?
1. Suppose that the equity multiplier is -2,8. Asset turnover is 2. Long-term liabilities are 400 TL. Current ratio 1,5. Non-current assets are 100 TL. What will be the net sales amount? a. 482,76 TL b.637,93 TL c.965,52 TL d.1.120,69 TL
16) Find the gaps in the following table: Item Capital (S) a. 12,350 b. ?? C. 33,266 d. ?? e. 11,900 f. 21.210 g. 12,200 h. ?? 1. 31,310 j. 53,110 Assets (S) 50,200 82,430 ?? 46,780 21,520 ?? 23,670 11,780 85,790 ?? Liabilities (S) ?? 21,850 32,680 12,123 ?? 3,400 ?? 5,200 ?? 8,230
a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) %3D b) Calculate the duration and convexity of the both asset and liability sides
Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales ii) ROA = ROE / Equity multiplier %3D O ii) Capital intensity ratio = 1 / Return on assets O iv) Quick ratio = Cash / Current liabilities
In the following balance sheet, estimate the impact on the economic value of equity (EVE). If interest rates of assets fall by 1% and deposit rates increase by 1%. EVE=$()
1- If the classic balance sheet formula were written as follows, what would be the net working capital? Current Liabilities - Current Assets Fixed Assets - Long-Term Liabilities O (Total Assets - Fixed Assets) - (Current Liabilities) O Equity – Current Assets
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Investments $242,000 98,000 105,000 5,000 $ 130,000 102,000 90,000 3,000 Long-term assets: Land Equipment Less: Accumulated depreciation 580,000 890,000 (528,000) $1,392,000 580,000 770,000 (368,000) $1,307,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payab le Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $ 109,000 7,000 9,000 95,000 13,000 6,000 2$ 110,000 220,000 800,000 357,000 $1,392,000 $1,307,000 800,000 173,000 Total liabilities and stockholders' equity Additional information for 2021: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250.
(D/D+E)kd(1-T) + (E/D+E)k2 is also known as Group of answer choices The required rate of equity return The required rate of debt cost The weighted average cost of capital The average cost of equity
Q4: What is a turnover ratio? What are some examples of direct- and indirect-interest users of financial statements?
RATIO ANALYSIS. Debt Ratio Activity 6 · Understand the information provided by the debt ratio. · Identify the expected range and whether an increasing or decreasing trend is preferred. Purpose: The debt ratio compares total liabilities to total assets. This ratio measures the proportion of assets financed by debt. It is a measure of long-term solvency. Total liabilities DEBT RATI0 = Total assets JOHNSON & CITIGROUP 12/31/99 HEWLETT- PACKARD 10/3 1/99 JOHNSON 1/03/99 WAL-MART 1/31/99 ($ in 000s) Assets $716,937,000 $35,297,000 $26,211,000 $49,996,000 Liabilities 667,251,000 17,002,000 12,621.000 28,884,000 Stockholders' Equity $ 49,686,000 $18,295,000 $13,590,000 $21,112,000 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. For each-company listed above, compute the debt ratio. Record your results below. Debt ratio: 0.93 2. The debt ratios computed above are primarily in the ranġe (less than 0,40 / 0.40 through 0.70 / over 0.70): 3. % of Wal-Mart's assets are financed by debt. 4.…
Which statement is correct? O A. current ratio 1.00 D. gross margin > net margin