MEGAFRAME COMPUTER COMPANY
Balance Sheet
As of December 31, 2006
ASSETS
Cash $ 40,000
Accounts Receivable 60,000
Inventory 90,000
New Plant and Equipment 220,000
Total Assets $410,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable $ 60,000
Accrued Expenses 40,000
Long-Term debt 130,000
Common Stock 60,000
Paid-In capital 20,000
Retained earnings 100,000
Total Liabilities and Stockholders' Equity $410,000
MEGAFRAME COMPUTER COMPANY
Income Statement
For the Year Ended December 31, 2006
Sales (all on credit) $720,000
Cost of Goods Sold 500,000
Gross Profit 220,000
Sales and Administrative Expense 20,000
Depreciation 40,000
Operating Profit 160,000
Interest Expense 16,000
Profit before Taxes 144,000
Taxes (30%) 43,200
Net Income $100,800
Using the DuPont method, return on assets (investment) for Megaframe Computer is approximately?
The firm's return on equity is?
The firm's average collection period is?
The firm's receivable turnover is?
Megaframe's quick ratio is?
Compute Megaframe's after tax profit margin|||OK. Well, as per your instructions, I did it on my own.
The firm's average collection period is? 32 days
The firm's receivable turnover is? 1.3
Megaframe's quick ratio is? 2.2
Compute Megaframe's after tax profit margin 6.7%|||You may have done better than you think. See, I sort of took offense at your 'do it own your own' comment. Mentally, I said to myself "YOU do it on your own". My numbers are completely made up. Sorry about that. Try not to order people around when asking people to do your homework for you :-)
Report Abuse
No comments:
Post a Comment