Question 34 - Total asset turnover = $2,000,000/...

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34. Profitability Ratios Profit margin = $168,000/2,000,000= 8.40% Return on assets = $168,000/$760,000 = 22.1% Return on equity = $168,000/$480,000 = 35% Assets Utilization Ratios Receivable turnover = $2,000,000/$120,000=16.66x Average collection period = $120,000/$5,555=21.6 days Inventory turnover = $2,000,000/$180,000 = 11.11x Fixed asset turnover = $2,000,000/ $350,000 = 5.71x
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Unformatted text preview: Total asset turnover = $2,000,000/ $760,000=2.63x Liquidity Ratio Current ratio = $370,000/$110,000= 3.36x Debt Utilization Ratios Debt to total assets = $280,000/$760,000=36.84% Times interest earned = $300,000/ $20,000=15x Fixed charge coverage = $310,000/$30,000=10.33x...
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This note was uploaded on 05/11/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.

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