Computation of leverage, profitability, and liquidity ratios for Flying Penguins Corp, Breckenridge Ski Company, Rangoon Timber Company, and Cisco Systems
Not what you're looking for?
4.2 Liquidity ratios: Flying Penguins Corp. has total current assets of $11,845,175, current liabilities of $5,311,020, and a quick ratio of 0.89. What is its level of inventory?
4.6 Leverage ratios: Breckenridge Ski Company has total assets of $422,235,811 and a debt ratio of 29.5 percent. Calculate the company's debt-to-equity ratio and the equity multiplier.
4.8 DuPont equation: The Rangoon Timber Company has the following relationships:
Sales/Total assets = 2.23; ROA = 9.69%; ROE = 16.4%
What are Rangoon's profit margin and debt ratio?
4.18 Profitability ratios: Cisco Systems has total assets of $35.594 billion, total debt of $9.678 billion, and net sales of $22.045 billion. Their net profit margin for the year was 20 percent, while the operating profit margin was 30 percent. What are Cisco's net income, EBIT ROA, ROA, and ROE?
Purchase this Solution
Solution Summary
This solution provides calculations for liquidity ratios, leverage ratios, DuPont equation and profitability ratios.
Solution Preview
4.2
Quick ratio = (current assets - inventories) / current liabilities
0.89 = (11,845,175 - inventories) / 5,311,020
4726807.80 = 11,845,175 - inventories
4726807.80 - 11,845,175 = - inventories
-7118367.2 = - inventories.
Thus, inventories = $7,118,367.20
4.6
debt ratio = total debt / total assets
0.295 = total debt / 422,235,811
total debt = $124,559,564.25
D/E = D/A / ...
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.