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Week2 HW

Week2 HW - f Inventory is sold at cost current ratio rise g...

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Brineydi Peralta 3/ 20/ 10 Week 2 Chapter 2 Problem 2, 4,6,8 Chapter 3 Critical Thinking 3.1 Problem 2,4,6,16 2 . Fyre Inc. Net Sales 625,000 Cost of good sold 260,000 Depreciation 79,000 Earning Before Interest & Taxes 286,000 Interest Paid 43,000 Taxable Income 243,000 Taxes 85,050 Net Income 157,950 4. EPS 157,950/40,000= 3.95 per share DPS 60,000/40,000= 1.5 6. Taxes .15(50,000) = 7,500 .25(75,000-50,000) =6,250 .34(100,000-75,000) =8,500 .39(315,000-100,000)= 83,850 106,100 8. Stone Sour Inc. 10,620 +1,900= 12,560 12,560-1,460= 11,100 11,100* .35= 3,885 11,100-3,885= 7,215

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Chapter 3 Critical Thinking 3.1 Current Ratio a. Inventory is purchased -Nothing occurs to ratio - b. A supplier is paid- the current ratio moves away from 1 c. A short-term bank loan is repaid – The current ratio moves away from 1 to be greater. d. A long-term debt is paid off early – The current ratio moves away from 1 e. A customer pays off a credit account – the current ratio rise
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Unformatted text preview: f. Inventory is sold at cost - current ratio rise g. Inventory is sold for a profit – The current ratio rise 2. 27,000,000 * .08 = 2,160,000 net income ROA 2,160,000/ 19,000,000= 11% ROE 2,160,000/ 6,400,000= 34% 4. 8,493,825/ 743,186= 11.4 times 365 days/ 11.4 = 32 days 6. Net Income 340,000 EPS 340,000/ 570,000= .60 DPS 190,000/ 570,000= .33 6,800,000/ 570,000= 11.93 39/ 11.93= 3.27 16. 2007 2008 a. Current assets 166,689/219,186= .76 222,608/245,856= .90 b. Quick Ratio (166,689-104,339)/219,186 =.28 (222,608-144,696)/245,856 =.32 c. Cash Ratio 18,288/219186 = .08 22,455/245,856 = .09 d & e. Debt-equity ratio and equity multiplier: Year 2007 : (166,689-339,693)/ 166,789 = -1.03 1- (-1.03)= 2.03 -1.03/2.03 = .5 Times 1/ -.5 = -2 Year 2008: (222,608- 407,490)/ 222,608 = -.83 1-(-.83)= 1.83 -.83/1.83= -.45 1/-.45= -2.22...
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