Copy of Chapter_03_ClassExercises

# Copy of Chapter_03_ClassExercises - 1.90 b. Quick ratio...

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Foundations of Financial Managemen Problem 3-19 Objective Overall ratio analysis Student Name: Course Name: Student ID: Course Number: The balance sheet for Bryan Corporation is shown below. Sales for the year were \$3,040,000, wi sales sold on credit. BRYAN CORPORATION Balance Sheet 200X Assets Liabilities and Stockholders' Equity Cash \$50,000 Accounts payable \$220,000 Accounts receivable 280,000 Accrued taxes 80,000 Inventory 240,000 Bonds payable (long term) 118,000 Plant and equipment 380,000 Common stock 100,000 Paid-in-capital 150,000 Retained earnings 282,000 Total liabilities and Total assets \$950,000 stockholders' equity \$950,000 Compute the following ratios: a. Current ratio. b. Quick ratio. c. Debt-to-total-assets ratio. d. Asset turnover. e. Average collection period. Solution Problem 3-19 Instructions Enter formulas to calculate the following ratios. If possible, use cell references to the balance she

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a. Current ratio

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Unformatted text preview: 1.90 b. Quick ratio 1.10 c. Debt-to-total-assets ratio 44% d. Asset turnover 3.20 e. Average collection period 44.21 nt ith 75 percent of eet. Foundations of Financial Manageme Problem 3-20 Objective Debt-utilization ratios Student Name: Course Name: Student ID: Course Number: The Lancaster Corporation's income statement is given below. a. What is the times-interest-earned ratio? b. What would be the fixed-charge-coverage ratio? LANCASTER CORPORATION Sales \$200,000 Cost of goods sold 116,000 Gross profit 84,000 Fixed charges (other than interest) 24,000 Income before interest and taxes 60,000 Interest 12,000 Income before taxes 48,000 Taxes (35%) 16,800 Income after taxes \$31,200 Enter formulas to calculate the following ratios. If possible, use cell references to the inc a. Times interest earned 5 b. Fixed charge coverage 2.33 ent come statement....
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## Copy of Chapter_03_ClassExercises - 1.90 b. Quick ratio...

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