ORIE 3150 Homework _4 Fall 2009 (1)

ORIE 3150 Homework _4 Fall 2009 (1) - Show two decimals. b....

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ORIE 3150 Homework #4 Do by September 24, 2009 1. Using the data from fiscal year 2009 (year ended June 30, 2009) for Microsoft, and a 40% tax rate, find the: a. Return on Assets b. Return on Invested Capital c. Return on Owner’s Equity d. Price/Earnings Ratio (using the most recent price) 2. Cash cycle Here is annual data from Big Joes Inc., a retailer of work clothing: Year Ended January 31, 2006 Year Ended January 31, 2005 Year Ended January 31, 2004 Total Net Sales $43,800,000 $41,200,000 $47,100,000 Cost of Goods Sold $30,700,000 $28,300,000 $33,400,000 Cash $1,500,000 $2,300,000 $2,100,000 Accts Receivable $4,200,000 $3,950,000 $4,600,000 Accts Payable $16,300,000 $13,900,000 $17,900,000 Inventory $5,100,000 $4,900,000 $5,800,000 a. Find the days of inventory, days of accounts payable, and days of accounts receivable for the fiscal year 2006, ended January 31, 2006. Do not round your answer to the nearest integer day!
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Unformatted text preview: Show two decimals. b. How much cash was used or provided (specify which) by the cash cycle in fiscal 2006? 3. Baichung Bhutia Corporation (BB Corp.) is a sporting goods manufacturer and distributor. Selected financial data from the past three years is shown. BB Corp. is attempting to improve its cash cycle by modifying its inventory policies. Based upon the data provided, has BB Corp. been successful in this endeavor? Provide calculations and numbers to justify your answer. 2008 2007 2006 Net Sales (total) $27,471,000 $24,156,000 $21,984,000 Sales (credit sales only) $9,450,000 $7,890,000 $6,734,000 Cost of Goods Sold $19,080,000 $16,490,000 $14,230,000 Beginning Inventory $4,345,000 $3,900,000 $3,756,000 Ending Inventory $4,500,000 $4,345,000 $3,900,000 Cash $2,143,678 $2,190,467 $2,089,345 From the textbook: E5-1, E5-9, P5-3A, P5-7B...
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ORIE 3150 Homework _4 Fall 2009 (1) - Show two decimals. b....

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