FI 311 Connect homework #3

FI 311 Connect homework #3 - CONNECT 3 1) Jessica's...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CONNECT 3 1) Jessica's Boutique has cash of $41, accounts receivable of $58, accounts payable of $210, and inventory of $170. What is the value of the quick ratio? .47 1.28 1.75 .28 .81 Quick ratio = ($41 + $58)/$210 = $0.47 2) A firm has a debt-equity ratio of .38. What is the total debt ratio? .61 1.38 .39 1.63 .28 The debt-equity ratio is 0.38. If total debt is $38 and total equity is $100, then total assets are $138. Total debt ratio = $38/$138 = 0.28. 3) Al's Sport Store has sales of $3,130, costs of goods sold of $2,090, inventory of $543, and accounts receivable of $418. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? ( FORMAT TO 4 DECIMALS ) 94.8 days 63.3 days 93.5 days 111.9 days 110.8 days Inventory turnover = $2,090/$543 = 3.849 Days in inventory = 365/3.849 = 94.8 days 4) Galaxy United, Inc. 2009 Income Statement ($ in thousands) Net sales $5,690 Less: Cost of goods sold 4,060 Less: Depreciation 420 Earnings before interest and taxes 1,210
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Less: Interest paid 29 Taxable Income 1,181 Less: Taxes 413 Net income $ 768 Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in thousands) 2008 2009 2008 2009 Cash $ 70 $ 170 Accounts payable $1,340 $1,170 Accounts rec. 990 850 Long-term debt 710 530 Inventory 1,540 1,980 Common stock $3,220 $3,452 Total $2,600 $3,000 Retained earnings 910 1,178 Net fixed assets 3,580 3,330 Total assets $6,180 $6,180 $6,330 What is the debt-equity ratio for 2009? .37
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

FI 311 Connect homework #3 - CONNECT 3 1) Jessica's...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online