Homework #3

Homework #3 - Homework #3 CEE 498 1) Quick Ratio = Total...

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Homework #3 CEE 498 1) Quick Ratio = Total Quick Assets / Current Liabilities 943,846/632,124 = 1.493 > 1 good liquidity. Current Ratio = Total Current Assets / Total Current Liabilities 994,290/632,124 = 1.573 > 1 good liquidity. Collection Period = (Accounts Receivable*365) / Annual Sales Revenue ((321,258 + 2439)365) / 1,825,499 = 64.7 > 60 days collection period is longer than desired but very close Net Profit/Tangible Net Worth = 144,067/(1,022,478 – 632,124) = 36.9% Net Profit/Total Assets = 144,067/1,022,478 = 14% Net Sales/Tangible Net Worth = 1,825,449/(1,022,478 – 632,124) = 4.67 Net sales/Working Capital = 1,825,449/(994,290 – 632,124) = 5.04 General & Administrative Expenses/Tangible Net Worth 363,421/ (1,022,478-632,124) = .931 Fixed Assets/Tangible Net Worth = 28,188 / 390,354 = 7.2% this is acceptable Total Liabilities/Tangible Net Worth = 632,124 / 390,354 = 1.62 Hard Debt/ Tangible Net worth = 100,00 / 390,354 = .256 Overall, it appears that the company is in OK financial shape. Some of their
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This note was uploaded on 04/25/2010 for the course CEE ID taught by Professor Russeljeffries during the Spring '10 term at Wisconsin.

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Homework #3 - Homework #3 CEE 498 1) Quick Ratio = Total...

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