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1900Balance Sheet ($ in Millions)Liabilities andOwners' EquitySales700Cost of Goods Sold700Administrative Expenses100Depreciation348Earnings Before Interest and Taxes-448Interest Expense100Taxable Income-548Taxes-172Net Income-376Dividends0Addition to Retained Earnings-376Number of Shares Outstanding (Milions)200Price per Share1.24Income Statement ($ in Millions)Other InformationIn the answer boxes below, select the right answer from the drop-down menu. Each answer is worth 2 points. Answers are rounded to two decimals.RatioAnswer Days Sales in Inventory260.71Average Collection Period104.29Debt to Equity Ratio2.17AR Turnover3.5Current Ratio1.71To find the Days Sales in Inventory: Days in Sales Inventory: (500 Inventory/700 COGS) x 365
10. On December 31, 2015, Panettone Inc. has total liabilities of $555,500 and total equity of $1,049,500. The company needs to raise additional funds through debt and equity. The company will issue 4,000 shares of common stock at $13.25 per share and in addition it intends to borrow as much as it can from Bank of Switzerville. Bank of Switzerville requires a maximum debt-to-asset ratio of 0.64. What is the maximum additional amount that the company can borrow after the additional stock is issued?
11. RZM Store sells jeans. During January 2014, its inventory records for one brand of designer jeans were as follows:QuantityPrice perpairTotalBeginning Inventory10 pairs$20= $200January 6 Purchase4 pairs$25=$100January 10 Sale5 pairsN/AJanuary 15 Purchase7 pairs$30=$210January 20 Sale10 pairsN/AJanuary 25 Purchase 4 pairs$30=$120Using this information, periodic FIFO cost of goods sold is? $330