Hwk #3 - 901-948-0681CEE 498 Construction Project...

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Unformatted text preview: 901-948-0681CEE 498 Construction Project ManagementHomework #31. Total Quick Assets / Current Liabilities (Quick Ratio) = $528,688 / $632,124= 0.8363Total Current Assets / Total Current Liabilities (Current Ratio)= $994,290 / $632,124= 1.5729Accounts Receivable*365 / Ann. Sales Revenue (Collection Period)= $321,258*365 / $1,825,449= 64.235 daysNet Profit/ Tangible Net worth = $227,209 / $290,354=$227,209 / $ 290,354= 0.7825Net Profit / Total Assets= $227,209 / $1,022,478= 0.2222Net Sales / Tangible Net Worth= $1,825,449 / $ 290,354= $1,825,449 / $ 290,354= 6.286Net Sales / Working Capital= $1,825,449 / ($994,290-$632,124)= $1,825,449 / $362,166= 5.0403General & Admin Expenses/ Tangible Net Worth= $363,421 / $ 290,354= $363,421 /$ 290,354= 1.252Fixed Assets/ Tangible Net Worth= $28,188 / $ 290,354= $28,188 / $ 290,354= .0971Total Liabilities/ Tangible Net Worth= $732,124 /$ 290,354= $732,124 / $ 290,354= 2.5214Hard Debt/ Tangible Net Worth= $100,000 / $ 290,354= $100,000 / $ 290,354= .3444For the company Baker Electric, there are several ratios outside of the range. 1.The quick ratio is 0.8363 but it should be greater than 1.0. 2.The collection period is every 64.235 days, but it should be less than 60 days. This means the companys ability to meet its short-term financial obligations is less then good. 3.The ratio Net Sales / Tangible Net Worth is 6.286, but it should be between 10 and 15. This means the company has relatively very little activity in investing capital....
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Hwk #3 - 901-948-0681CEE 498 Construction Project...

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