Finance Homework 2

# 225000000 x 595238095 current assets average total

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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

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d. marginal cost to produce the 7 th unit= 35
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• Spring '10
• MARGSIRI
• Generally Accepted Accounting Principles, average total assets, Assets/ Current Liabilities, profit margin= earnings

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