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Copy of FCF 9th edition Chapter 03

# Copy of FCF 9th edition Chapter 03 - Chapter 3 Problems...

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Chapter 3 Problems 1-30 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-In" be installed in Excel. To install these, click on the Office button then "Excel Options," "Add-Ins" and select "Go." Check "Analyis ToolPak" and "Solver Add-In," then click "OK."

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Chapter 3 Question 1 Input area: Net working capital \$1,370 Current liabilities 3,720 Inventory 1,950 Output area: Current assets \$5,090 Current ratio 1.37 Quick ratio 0.84
Chapter 3 Question 2 Input area: Sales \$29,000,000 Total assets 17,500,000 Total debt 6,300,000 Profit margin 8% Output area: Net income \$2,320,000 Return on assets 13.26% Total equity \$11,200,000 Return on equity 20.71%

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Chapter 3 Question 3 Input area: Accounts receivable \$431,287 Credit sales 3,943,709 Output area: Receivables turnover 9.14 Days' sales in receivables 39.92 The average collection period for an outstanding accounts receivable was 39.92 days.
Chapter 3 Question 4 Input area: Ending inventory \$407,534 Cost of goods sold 4,105,612 Output area: Inventory turnover 10.07 Days' sales in inventory 36.23 On average, a unit of inventory sat on the shelf 36.23 days.

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Chapter 3 Question 5 Input area: Total debt ratio 0.63 Output area: Debt/equity ratio 1.70 Equity multiplier 2.70
Chapter 3 Question 6 Input area: Addition to retained earnings \$430,000 Cash dividends \$175,000 Total equity \$5,300,000 Common shares outstanding 210,000 Share price \$63 Sales \$4,500,000 Output area: Net income \$605,000 Earnings per share \$2.88 Dividends per share \$0.83 Book value per share \$25.24 Market-to-book ratio 2.50 P/E ratio 21.87 Sales per share \$21.43 P/S ratio 2.94

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Chapter 3 Question 7 Input area: Equity multiplier 2.80 Total asset turnover 1.15 Profit margin 5.50% Output area: Return on equity 17.71%
Chapter 3 Question 8 Input area: Profit margin 6.80% Total asset turnover 1.95 Return on equity 18.27% Output area: Equity multiplier 1.38 Debt/equity ratio 0.38

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Chapter 3 Question 9 Input area: Decrease in inventory \$375 Decrease in accounts payable 190 Increase in notes payable 210 Increase in accounts receivable 105 Output area: Decrease in inventory is a source of cash \$375 Decrease in accounts payable is a use of cash (190) Increase in notes payable is a source of cash 210 Increase in accounts receivable is a use of cash (105) Change in cash \$290
Chapter 3 Question 10 Input area: Cost of goods sold \$28,384 Accounts payable balance 6,105 Output area: Payables turnover 4.65 Days' sales in payables 78.51 The company left its bills to suppliers outstanding for 78.51 days on average. A large value for this ratio could imply that either (1) the company is having liquidity

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Copy of FCF 9th edition Chapter 03 - Chapter 3 Problems...

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