Ch_03_HW_A_Solutions

Ch_03_HW_A_Solutions - Ch 03 HW A Solutions 1. Current...

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1 Ch 03 HW A Solutions 1. Current Ratio = Current Assets / Current Liabilities PY: 113,245 / 166,435 = 0.680415778 0.68 times 2. Quick Ratio = (Current Assets – Inventory) / Current Liabilities PY: ( 113,245 47,789 ) / 166,435 = 0.393282663 0.39 times 3. Cash Ratio = Cash / Current Liabilities CY: $11,187 / 176,775 = 0.063283835 0.06 times 4. Total Asset Turnover = Sales / Total Assets CY: $520,000 / $530,627 = 0.979972749 0.98 times 5. Inventory Turnover = Cost of Goods Sold / Inventory CY: 340,000 / 47,655 = 7.134613367 7.13 times 6. Receivables Turnover = Sales / Accounts Receivable CY: $520,000 / 56,786 = 9.157186631 9.16 times 7. Total Debt Ratio = Total Debt / Total Assets Total Debt = Current Liabilities + Long Term Debt PY: ( 166,435 + 120,000 ) / $518,933 = 0.551969137 0.55 times 8. Debt - Equity Ratio = Total Debt / Total Equity PY: ( 166,435 + 120,000 ) / 232,498 = 1.231989092 1.23 times 9. Equity Multiplier = Total Assets / Total Equity = 1 + (Debt - Equity Ratio) PY:
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This note was uploaded on 11/29/2011 for the course FINANCE 332 taught by Professor Linney during the Fall '11 term at Guilford Tech.

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Ch_03_HW_A_Solutions - Ch 03 HW A Solutions 1. Current...

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