Finance Help
Use the following to answer questions 1-10: SHOW YOUR WORK!!!!!
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MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31, 2003
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ASSETS
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Cash |
$ 40,000 |
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Accounts Receivable |
60,000 |
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Inventory |
90,000 |
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New Plant and Equipment |
220,000 |
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Total Assets |
$410,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Accounts Payable |
$ 60,000 |
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Accrued Expenses |
40,000 |
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Long-Term debt |
130,000 |
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Common Stock |
60,000 |
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Paid-In capita |
20,000 |
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Retained earnings |
100,000 |
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Total Liabilities and Stockholders’ Equity |
$410,000
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MEGAFRAME COMPUTER COMPANY Income Statement For the Year Ended December 31, 2003
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Sales (all on credit) |
$720,000 |
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Cost of Goods Sold |
500,000 |
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Gross Profit |
220,000 |
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Sales and Administrative Expense |
20,000 |
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Depreciation |
40,000 |
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Operating Profit |
160,000 |
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Interest Expense |
16,000 |
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Profit before Taxes |
144,000 |
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Taxes (30%) |
43,200 |
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Net Income |
$100,800 |
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******SHOW YOUR WORK*******
1. Using the DuPont method, return on assets (investment) for Megaframe Computer is approximately
2. The firm’s average collection period is
BUS201
Take home exam 1 *****SHOW YOUR WORK*****
3. Times interest earned for Megaframe Computer is
4. Megaframe’s quick ratio is
5. Megaframe’s current ratio is
6. The firm’s debt to asset ratio is
7. What is Megaframe Computer’s total asset turnover?
8. Compute Megaframe’s after tax profit margin.
9. The firm’s return on equity is
10. The firm’s receivable turnover is
