Accounting

Chapter 3 3-1 Days gross sales Outstanding = Receivables / honest Sales per day or Receivables / (Annual Sales/365) DSO 20 = Receivables / two hundred00 Receivables = DSO x Average periodic sales = 20 x $20,000 Receivables = $ four-spot hundred,000 3-2 rightfulness Multiplier = 2.5 righteousness proportion = 1/ justness Multiplier legality Ratio = 1/2.5 = 0.40 Debt Ratio + Equity Ratio = 1 Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 or 60% 3-3 take hold horn in per parting = mutual equity/ personas outstanding ($6 meg/800M) = $7.5 Market/book balance = market scathe per show/book value per donation ($75/$7.5) = 10 3-4 blemish/ silver flow ratio = Price per share / Cash flow per share 8 = Price per share / 3 Price per share = 8 x 3 = 24 Price/ dough ratio = Price per share / Earnings per share P/E ratio = Price per share / Earnings per share = 24 / 1.5 P/E ratio = 16 3-5 Profit Margin (PM) = Net Inco me / Sales 3 = Net income /$ ascorbic acidM Net income = Profit Margin x 100 (3 x 100) = $300M Equity Multiplier = Total Assets / Common Equity 2.0 = $50M / Common Equity Common Equity = $50M / 2.

0 = 25 pay on Common Equity (hard roe) = ROA (NI / TA) x EM (TA / CE) roe = (300/50) x (50/25) = 6 x 2 ROE = 12% Chapter 4 4-1 The FV of a single sum for this business is calculated A lodge of 10,000 dollars with an interest rate of .10 intensify annually with 5 periods would be 16,105.10dolloars if compounded annually . 4-2 At = A0 x (1+r/100m)^ mt 5000=AO x (1+0.07/100*1)^1x20 5000=AO x(1.0007)^20 5000=AO x 20.014 249.83=Present value ! 4-6 The FV of a on indifferent annunity that pays 300 annually at .07 would be: S = $300(((1 + .07)n - 1) / .07) S = $1725 So, the difference $225 is because of 7% interest. S = R(((1 + i)n - 1) / i) x (1 + i) S = $1725 x 1.07 S = $1846 4-13 a. =$400 x 6.145= $2458 b. =$200 x 4.329= $865.80 c. = $200 x 5 eld =$2000 d. $400 at 10% for 10 years is $400 x 6.145= $2458 $200 at 5% for 5 age is $200 x...If you want to jack off a full essay, order of magnitude it on our website: OrderCustomPaper.com

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