Homework Chapter 9

Homework Chapter 9 - Homework Chapter 9 Chtp 9: 10,12,14...

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Homework Chapter 9  Chtp 9: 10,12,14 9.10 Given: Income/Sales =  6% Sales/Assets =1.5 times Asset/Equity = 1.3 a) Find income/equity = income/sales *sales/assets *assets/equity         = .06*1.5*1.3 =  11.7%        b) If  Income/Sales = 5%, how much would leverage increase to have the same ROE .117 = .05*1.5*X X = 1.56 9.12   Given:  Income/assets = .10 Debt/assets = .65, equity/assets = 1-.65 = .35 A/R collection period = 65 days, AC/(sales/365) = 65, AC = 65*sales/356, AC/sales =  65/365=.178 Income/sales = 15% Total assets = 3.6 million Working capital = 800,000 Find: A) Account receivable balance in dollars, AR = AR/sales*sales/income*income/assets*assets = . 178*(1/.15)*.1*3,600,000= 4272 b) income/equity  income/equity = income/assets*assets/equity = .1/.35 = 
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This note was uploaded on 06/23/2009 for the course IME 239 taught by Professor Schlemer during the Spring '08 term at Cal Poly.

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Homework Chapter 9 - Homework Chapter 9 Chtp 9: 10,12,14...

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