18. fixed asset turnover= sales/ average fixed assets
Total asset turnover= sales/ average total assets
a.
Fixed asset turnover ratio
6.5= 1,000,000/x= 153,846. 15
Total asset turnover
4.2=1,000,000 / x= 238,095.24
Current assets= average total assets – average fixed assets= 238,095.24-153,846.15=
84,249.09
b.
Fixed asset turnover ratio
6.5= 2,000,000/x= 307,692.31
Total asset turnover
4.2=2,000,000 / x= 476,190. 48
Current assets= average total assets – average fixed assets= 476,190. 48- 307,692.31
c.
Fixed asset turnover ratio
6.5=5,000,000/x= 769,230.77
Total asset turnover
4.2= 5,000,000/ x= 1,190,476.19
Current assets= average total assets – average fixed assets= 1,190,476.19- 769, 230.77=
421,245. 42
d.
Fixed asset turnover ratio
6.5= 25,000,000/x= 3,846,153.85
Total asset turnover
4.2=25,000,000 / x= 5,952,380.95
Current assets= average total assets – average fixed assets= 5,952,380.95- 3,846,153.85=
2,106,227.10
20. debt ratio= total liabilities/ total assets
Funded debt ratio= funded debt/ total assets
Debt/ equity ratio= total liabilities/ total equity
total liabilities/ (total assets- total
liabilities)
a.
Total liabilities
debt ratio
.45= x/ 900,000= 40,500
b.
Interest- bearing liabilities
funded debt ratio
.35= x/ 900,000= 31,500
c.
Noninterest- bearing liabilities= 40,500-31,500= 9,000
d.
Debt/ equity ratio= 40,500/ (900,000-40,500)= .047
22. times interest earned= EBIT/ interest
Fixed charge coverage= __________EBIT_________
Interest + principal (__1__)
1 – t
a.
Times interest earned
6= 500,000/ x= 83,333.33
b.
Fixed charge coverage
500,000/ 83,333.33 + x (1/ (1-.35)=
24. dividend payout ratio= dividends/ earnings after taxes
Retention ratio= earnings retained/ earnings after taxes
a.
0= x/ 140,000= 0
X= 140,000/140,000= 1
b.
.30= x/ 140,000= 42,000
X=98,000 /140,000= .7
c.
.65= x/ 140,000= 91,000
X= 49,000/140,000= .35
d.
.1= x/ 140,000= 14,000
X= 126,000/140,000= .9
28.
a.
total cost= 60 + 51 + 44 +39 + 36 + 35 + 35= 300
b.
average cost=
300/ 7= 42.86
c.
marginal cost to produce the 6
th
unit= 35