Thank you
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1.\u00a0Vigo Vacations has an equity multiplier of 2.9. Thecompany’s assets are financed with some combination of long-term debt andcommon equity. What is the company’s debt ratio? Round your answer to twodecimal places.
%
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Currentand Quick Ratio
2.Ace Industries has current assets equal to $4 million. The company’s currentratio is 2.5, and its quick ratio is 2.0.\u00a0\u00a0
What is the firm’s level\u00a0\u00a0\u00a0\u00a0 of current liabilities?\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0\u00a0\u00a0 million\u00a0
What is the firm’s level\u00a0\u00a0\u00a0\u00a0 of inventories?\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0\u00a0\u00a0 million <\/p>\n
3.\u00a0BalanceSheet Analysis
Completethe balance sheet and sales information in the table that follows forHoffmeister Industries using the following financial data
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Debtratio: 55% Quick ratio: 0.95 Total assets turnover: 2.8Days sales outstanding: 31 days* Gross profit margin on sales: (Sales – Cost of goods sold)\/Sales = 26% Inventory turnover ratio: 5.0* Calculation is based on a 365-day year.
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Roundyour answers to the nearest whole dollar.
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BalanceSheet
\u00a0 Cash
\u00a0 \u00a0 $\u00a0
\u00a0 \u00a0 Accounts\u00a0 payable
\u00a0 \u00a0 $\u00a0
\u00a0 \u00a0 Accounts\u00a0 receivable
\u00a0 \u00a0 $\u00a0
\u00a0 \u00a0 Long-term\u00a0 debt
\u00a0 \u00a0 $\u00a060,000\u00a0
\u00a0 \u00a0 Inventories
\u00a0 \u00a0 $\u00a0
\u00a0 \u00a0 Common stock
\u00a0 \u00a0 $\u00a0
\u00a0 \u00a0 Fixed assets
\u00a0 \u00a0 $\u00a0
\u00a0 \u00a0 Retained\u00a0 earnings
\u00a0 \u00a0 $\u00a097,500\u00a0
\u00a0 \u00a0 Total assets
\u00a0 \u00a0 $\u00a0300,000
\u00a0 \u00a0 Total\u00a0 liabilities and equity
\u00a0 \u00a0 $\u00a0
\u00a0 \u00a0 Sales
\u00a0 \u00a0 $\u00a0
\u00a0 \u00a0 Cost of goods\u00a0 sold
\u00a0 \u00a0 $\u00a0
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4.\u00a0PersonalAfter-Tax Yield
Corporatebonds issued by Johnson Corporation currently yield 8.5%. Municipal bonds ofequal risk currently yield 6.5%. At what tax rate would an investor beindifferent between these two bonds? Round your answer to two decimal places.
%
5.\u00a0Incomestatement
LittleBooks Inc. recently reported $3 million of net income. Its EBIT was $6.5million, and its tax rate was 40%. What was its interest expense? (Hint:Write out the headings for an income statement and then fill in the knownvalues. Then divide $3 million net income by (1 – T) = 0.6 to find the pre-taxincome. The difference between EBIT and taxable income must be the interest expense.Use this same procedure to work some of the other problems.) Round your answerto the nearest whole dollar and enter your answer as a dollar amount.$\u00a0
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6.\u00a0NetCash Flow
KendallCorners Inc. recently reported net income of $2.1 million and depreciation of$357,000. What was its net cash flow? Assume it had no amortization expense.
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$
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8.Corporate After-Tax Yield
TheShrieves Corporation has $10,000 that it plans to invest in marketablesecurities. It is choosing among AT<\/p>\n","protected":false},"excerpt":{"rendered":"
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