Ch3_Solutions

Ch3_Solutions - Finance 323 Chapter 3 Homework Solutions...

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Finance 323 Chapter 3 Homework Solutions 1a. Current Ratio = Current Assets / Current Liabilities PY: 142,679 / 188,094 = 0.758551575 0.76 times 1b. Quick Ratio = (Current Assets – Inventory) / Current Liabilities PY: ( 142,679 61,815 ) / 188,094 = 0.429912703 0.43 times 1c. Cash Ratio = Cash / Current Liabilities CY: $12,676 / 201,990 = 0.062755582 0.06 times 2a. Total Asset Turnover = Sales / Total Assets CY: $864,500 / = 1.056591505 1.06 times 2b. Inventory Turnover = Cost of Goods Sold / Inventory CY: 432,900 / = 5.664525078 5.66 times 2c. Receivables Turnover = Sales / Accounts Receivable CY: $864,500 / = 11.069142125 11.07 times 3a. Total Debt Ratio = Total Debt / Total Assets Total Debt = Current Liabilities + Long Term Debt PY: ( 188,094 + 130,000 ) / = 0.460886902 0.46 times 3b. Debt - Equity Ratio = Total Debt / Total Equity PY: ( 188,094 + 130,000 ) / = 0.854898356 0.85 times 3c. Equity Multiplier = Total Assets / Total Equity = 1 + (Debt - Equity Ratio) PY: $690,178 /
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This note was uploaded on 02/24/2010 for the course ACCT 302 taught by Professor Staff during the Spring '08 term at Old Dominion.

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Ch3_Solutions - Finance 323 Chapter 3 Homework Solutions...

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