Excel Solutions - Chapter 03

Excel Solutions - Chapter 03 - Chapter 3 Problems 1-30...

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Chapter 3 Problems 1-30 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
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Chapter 3 Question 1 Input area: Net working capital $1,320 Current liabilities 4,460 Inventory 1,875 Output area: Current assets $5,780 Current ratio 1.30 Quick ratio 0.88
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Chapter 3 Question 2 Input area: Sales $29,000,000 Total assets 37,000,000 Total debt 13,000,000 Profit margin 9% Output area: Net income = $2,610,000 Return on assets = 7.05% Total equity = $24,000,000 Return on equity = 10.88%
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Chapter 3 Question 3 Input area: Accounts receivable $421,865 Credit sales 2,873,150 Output area: Receivables turnover = 6.81 Days' sales in receivables = 53.59 The average collection period for an outstanding accounts receivable was 53.59 days.
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Chapter 3 Question 4 Input area: Ending inventory $386,500 Cost of goods sold 2,532,095 Output area: Inventory turnover = 6.55 Days' sales in inventory = 55.71 On average, a unit of inventory sat on the shelf 55.71 days before it was sold.
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Chapter 3 Question 5 Input area: Total debt ratio 0.44 Output area: Debt/equity ratio = 0.79 Equity multiplier = 1.79
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Chapter 3 Question 6 Input area: Addition to retained earnings $310,000 Cash dividends 160,000 Total equity 6,500,000 Common shares outstanding 180,000 Share price $78 Output area: Net income = $470,000 Earnings per share = $2.61 Dividends per share = $0.89 Book value per share = $36.11 Market-to-book ratio = 2.16 P/E ratio = 29.87
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Chapter 3 Question 7 Input area: Equity multiplier 1.75 Total asset turnover 1.30 Profit margin 8.50% Output area: Return on equity = 19.34%
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Chapter 3 Question 8 Input area: Total asset turnover 1.63 Profit margin 9.20% Return on equity 18.67% Output area: Equity multiplier = 1.24 Debt/equity ratio = 0.24
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Chapter 3 Question 9 Input area: Increase in inventory $600 Increase in accounts payable 330 Decrease in notes payable 790 Increase in accounts receivable 950 Output area: Increase in inventory is a use of cash $(600) Increase in accounts payable is a source of cash 330 Decrease in notes payable is a use of cash (790) Increase in accounts receivable is a use of cash (950) Change in cash = Sources - Uses = $(2,010)
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Chapter 3 Question 10 Input area: Cost of goods sold $13,168 Accounts payable balance 2,965 Output area: Payables turnover 4.44 Days' sales in payables 82.19 The company left its bills to suppliers outstanding for 5 82.19 days on average A large value for this ratio could imply that either (1) the company is having liq problems, making it difficult to pay off its short-term obligations, or (2) that the company has successfully negotiated lenient credit terms from its suppliers.
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liquidity
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This note was uploaded on 05/26/2010 for the course BUSINESS A 139 taught by Professor Cheng during the Spring '09 term at 東京大学.

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Excel Solutions - Chapter 03 - Chapter 3 Problems 1-30...

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