{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Finance Homework 2

Fixed asset turnover sales average fixed assets total

Info iconThis preview shows pages 3–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 3

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

View Full Document Right Arrow Icon
d. marginal cost to produce the 7 th unit= 35
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '10
  • MARGSIRI
  • Generally Accepted Accounting Principles, average total assets, Assets/ Current Liabilities, profit margin= earnings

{[ snackBarMessage ]}