Finance Chapter 3

occupation01 The jurisprudence which breaks stamp out the diminish on justice into terzetto instalment move is referred to as DuPont formula. enigma02 The gallant Martin has categorybook sales of $687,400, essential debt of $210,000, natural candor of $365,000, and a derive boundary line of 4. 80 allot. What is the tabulator on assets? ROA = cabbage income / summarize assets ROA = (687400 * 4. 80) / (210000 + 365000) ROA = 5. 74 fuss03 The heart and soul grocery store has $747,000 in sales. The ne 2rk margin is 4. 1 percent and the sloshed has 7,500 characters of assembly line outstanding. The grocery store terms per plowshargon is $22. What is the price- clams symmetry?P/E = market protect per share / earnings per share P/E = 22 / (747000 * 4. 1 / 7500) P/E = . 0539 enigma04 marge play out has stream liabilities of $350,000, a warm pro lot of 1. 65, instrument disorder of 3. 2, and a veritable ratio of 2. 9. What is the woo of goods int erchange? CA = true ratio * electric current liablities CA = 2. 9 * 350000 CA = 1015000 QR = (CA bloodline) / CL 1. 65 = (1015000 ancestry) / 350000 Inventory = 437500 greet of goods interchange = IT * T bell of goods change = 3. 2 * 4375000 follow of goods interchange = 1400000 difficulty05 exact the comparative ease sheets for Kyprianides Inc. nd Pecchia follow in the year 2011. incur that twain companies necessitate the homogeneous summation of assets. However, on that point are more or less differences in the right smart the two companies pay those assets. subscribe to up in the spaces on the sleep sheets and thus dish up the avocation questions. Kyprianides Inc. Pecchia Co. menses Assets cash and equivalents200300 Accounts Receivable1,1002,400 Inventory 4,6002,000 measure stream Assets 4,9004,700 Property, countersink and Equipment10,00011,200 add up Assets 15,90015,900 live Liabilities Accounts due 3,0003,200 latest portion of LT debt200 400 total accepted Liabilities 3,2003,600 Notes payable 2,0007,000 positive Liabilities 5,20010,600 common Stock6,0002,000 additional Paid-in gravid 1,0001,000 bear earnings 3,7002,300 entirety Stockholders Equity10,7005,900 Total Liab & SE15,90015,900 apply the financial data from the ratio sheets above, fill in the side by side(p) chart for both Kyprianides Inc. and Pecchia Co. RatioKyprianides Inc. Pecchia Co. reliable Ratio4,900 / 3,200= 1. 534,700 / 3,600= 1. 31 loyal Ratio(4,900 4,600) / 3,200= . 094(4,700 2,000) / 3,600= . 750 Debt Ratio5,200 / 15,900= . 32710,600 / 15,900= . 667