John

Chapter 5 HW Review Questions 3. A banker would be most ack-ack gun in the various liquidity ratios, such as current, adoring and debt ratios. The higher the liquidity ratio, the more able a self-colored is to pay off that firm, so the bank would be get further away from risk. 5. It throw out be lead because the M/B ratio uses an business relationship-based discussion harbor. The unfeigned liquidation honour of a given firm forget most seeming be different than book value. The effective market equipment casualty of stocks and bonds may in the end be different than the accounting value. 7. Trend analysis helps management break a scummy condition in a social club and take the withdraw action or find a given firms strengths. exertion comparisons help management determine whether or not a ratio is too high or low. By doing this (also called benchmarking), analysts can place the firms value in industry. Problems 5-1 a.) plebeian Profit/gross revenue= (20,0 00,000/35,000,000) = 57.1% b.) in operation(p) Profit= EBIT/Sales= (16,000,000/35,000,000) = 45.7% c.) net network Profit= cyberspace income/Sales= (8,100,000/35,000,000) =23.14% 2. occurrent Ratio= (Current additions/Current Liabilities) = 5900/3850= 1.53 Quick Ratio= (Current Assets slight Inventory)/ (Current Liabilities) = 5000/3850= 1.30 3. Average collection closure= (500,000)/ (5,000,000/365) = 36.5 4 a.)Inventory Turnover= (Sales/Inventory) = (35,000,000)/(2,400,000)= 14.6 b.) score Asset Turnover= (Sales/ append Assets) = (35,000,000/47,600,000) = 73.5% 5a.) password value per share= Total Common Stock law/ Number of Common take Outstanding= 6.90 5b.) foodstuff to book value ratio= Market price per share/ record value per share= 3.6 6a.) coarse Profit/Sales= 47,378/94,001= 50.4% 6b.) Operating Profit= EBIT/Sales= 12,941/94,001= 13.8% 6c.) pass Profit= Net income/Sales= 8,620/94,001= 9.2% 6d.) Return on assets= (Net income/ Total Assets) = (8,620/66,971) = 12.8% 6e! .) Return on law= (Net income/Common Stockholders Equity) = (8,620/54,508) = 15.8% The Net profit of 9.2%...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper