Quiz 5 Solutions

Quiz 5 Solutions - Econ 4 Winter 2008 Quiz #5.3 1. The...

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Unformatted text preview: Econ 4 Winter 2008 Quiz #5.3 1. The Company's ROE using equity at the start of the operating period: (d) 35.0% = NI / Eq @2006 = 3,496 / 9,984 2. The Company's ROA using average assets and including nonrecurring gains & losses: (b) 20.5% = EBIT / (A@2006 + A@2007)/2 = (NI + Tx + I) or (OI Loss) / (17,205+25,347) = (3,496 + 1,512 647) or 4,40948) / (17,205+25,347) = 4,361 / 21,276 3. The ratio of profitstocash flow from operating activities: (a) 0.64 = NI / CFOA = 3,496 / 5,470 4. The largest share of Cash Flow from Operating Activities came from: (e) Net Income 5. Excluding gains (losses), EBITDA is: (b) $ 4,726 = Operating Income + Depreciation = 4,409 + 317 6. Days normalize with 360 of Sales in Receivables: (d) 60 = (Receivables / Sales) x 360 = (4,029 / 24,006) x 360 = 0.168 x 360 7. Days normalize with 360 of SG&A accrued: (c) 105 = (Accrued Expenses / SG&A) x 360 = (772 / 2,646) x 360 = 0.291 x 360 8. The Company's net profit margin: (a) 14.6% = NI / Sales = 3,496 / 24,006 Your Number __________________ ...
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