Chapter 3 homework

Question 18: Using the DuPoint Identity

We hace:

ROE= 11%, Sales= 6,183, total asset= 2,974, debt-equity= 0.57

 Net income?

ROE= profit margin x total asset turnover x equity multiplier (tỉ lệ giữa lợi nhuận và
vốn chủ sở hữu)

Total asset turnover= Sales/ Total asset= 2.079

Equity multiplier= total asset/ total equity= 1+ debt- equity ration= 1.57

 Profit margin= 0,0337

Profit margin= net income/ sales=net income/ 6,183 => net income= 208,37

Question 19:

Net income= 196,500; Profit margin= 6.8%; account balance= 119,630 ; 65% on
credit

 Sale’s receivable=?

Profit margin= net income/ sales => sales= 13,362

We have 65% on credit sales= 8685.3

Account receivable turnover ration= net credit sales/ average account receivable=
8685.3/119630= 0,0726

Sales in receivable= 365/ 0,0726= 5027.548

Question 20:

A long term debt ration= 0.35; current ratio = 1.30; current liabilities= 955; sales=
7210;

Profit margin= 8.3%; ROE= 17.5% => net fixed asset=?

Total asset= current asset + fixed asset=> net fixed asset = total asset – current asset

We have: current ratio= curent asset/ current liabilities => current asset= 1241.5
Profit margin = net income/ sales => net income= profit margin x sales= 598.43

ROE= net income/ total equity => total equity= 3419.6

Long term debt ratio = long term debt/ ( long term debr+ total equity)=> long term
debt= 1841.323

Total asset= long term debt + total equity+ current liabilities= 6215.92

 Net fixed asset = 4974.42

Question 22:

Firm A:

Debt/ total asset= 0.65

We have: debt = total asset- equity => ( total asset – equity)/ total asset= 0.65

= 1- (equity/ total asset)= 0.65

=> equity/ total asset= 0.35 => total asset= equity/ 0.35

ROA= net income/ total asset= 0.05 => 0.35 x net in / equity= 0.05=> net income/
equity= 0.14285714 = ROE

Firm B tương tự

Question 23:

Net income= 16481; tax rate= 34%; interest expense= 3681;

depreciation expense= 4385

 Cash coverage ratio=?

Cash coverage ratio= ( EBIT + Depreciation)/ Interest

EBIT= EBT + intesest expense

EBT= net profit x net income ratio = 16481 x (1-tax rate)= 10877.46

 EBIT= 14558.46

Cash coverage ratio= ( 14558.46 + 4385)/ 3681= 5.1463

Question 24:

Curent liabilities= 415000; quick ratio = 0,79; inventory turnover= 9.5;

current ratio= 1.25 => cost of goods sold =?

Current ratio= current asset / current liabilities => current asset= 518750
Quick ratio= ( current asset – inventory)/ current liabilities => inventory= 190900

Inventory turnover= cost of goods sold/ inventory => COGS= 190900 x 9.5=1813550

Question 25:

Net loss= 29157; sales= 315650;

Profit margin = net loss/ sales= 0.0924= 9.24%

In dollar sales were 395183 => net loss in dollar=