HM8 - HM8 Chapter 17 10 a Current ratio will be unaffected...

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HM8 Chapter 17 10. a.Current ratio will be unaffected. Inventories are replaced with either cash or accounts receivable, but total current assets are unchanged. b.Current ratio will be unaffected. Accounts due are replaced with the bank loan, but total current liabilities are unchanged. c.Current ratio will be unaffected. Receivables are replaced with cash, but total current assets are unchanged. d.Current ratio will be unaffected. Inventories replace cash, but total current assets are unchanged. 16. a.ROA = Asset turnover × Operating profit margin = 3 × 0.05 = 0.15 = 15% b.If debt/equity = 1, then debt = equity, so total assets are twice equity. ROEDebt burden
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25. Income Statement Millions of dollars Net sales $199.93 Cost of goods sold 120.00 10.00 Depreciation 20.00 EBIT 49.93 Interest expense 6.27 Income before tax 43.66 Tax 30.13 Net income $ 13.53 Balance Sheet Millions of dollars This year Last year Assets Cash and marketable securities
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HM8 - HM8 Chapter 17 10 a Current ratio will be unaffected...

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