Week 2 Problems (3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 eld. The communitys just daily gross sales ar $20,000. What is the level of its accounts receivable? Assume there ar 365 days in a year. DSO = days sales great = receivables / average sales per day = Receivable / (annual sales / 365) 20 = receivables / 20,000 Receivables = 20 * 20,000 Receivables = 400,000 (3-2) Debt proportionality Vigo Vacations has an paleness multiplier of 2.5. The gilds assets are financed with round combination of semipermanent debt and parkland justice. What is the companys debt balance? blondness Multiplier = 2.5 thusly Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 the formula is: Debt Ratio + Equity Ratio = 1 Therefore Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 or 60% (3-3) marketplace/Book Ratio Winston Washers stock outlay is $75 per parting. Winston has $10 one kibibyte thousand in total assets. Its balance sheet shows $1 one t housand thousand in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 one million million million shares of common stock outstanding. What is Winstons market/book proportion?
marketplace value per share = $75 common equity = 6,000,000 function of shares outstanding = 800 millions shares Market-to-book ratio = market value per share/(common equity/number of shares outstanding) Market-to-book ratio = $75/(6,000,000/800,000,000) Market-to-book ratio = $75/(6,000,000/800,000,000) market-to-book ratio = $75/7.5 market-to-book ratio = 10 Winston Washers market-t o-book ratio is 10. (3-4) expenditure/Ear! nings Ratio A company has an EPS of $1.50, a cash be given per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? (3-5) ROE Needham Pharmaceuticals has a profit shore of 3% and an equity multiplier of 2.0. Its sales are $ one blow million and it has total assets of $50 million. What is its ROE? Intermediate Problems 6-10 (3-6) Du Pont analysis Donaldson & watchword has an ROA of 10%, a 2% profit margin, and a upshot on...If you want to get a full essay, decree it on our website: OrderCustomPaper.com
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