Reference no: EM13680167
Use the following current year financial statements for Precision Manufacturing to perform ratio analysis.
Precision Manufacturing Income Statement
Revenue 8,200,000
Cost of goods sold 5,100,000
Gross profit 3,100,000
Operating expenses 2,500,000
Operating income (EBIT) 600,000
Interest expense 390,000
Earnings before taxes 210,000
Taxes (at 40%) 84,000
Net income 126,000
Precision Manufacturing Balance Sheet
Current assets
Cash 125,000
Accounts receivable 900,000
Inventory 575,000
Total current assets 1,600,000
Non-current assets
Fixed assets 5,500,000
Accumulated depreciation (1,100,000)
Net fixed assets 4,400,000
Total assets $6,000,000
Current liabilities
Accounts payable $945,000
Accrued liabilities 855,000
Total current liabilities 1,800,000
Non-current liabilities
Bonds payable 2,600,000
Total liabilities 4,400,000
Shareholders' equity
Common stock 140,000
Retained earnings 1,460,000
Total shareholders' equity 1,600,000
Total liabilities and shareholders' equity $6,000,000
(a) Calculate the firm's net profit margin percentage.
(b) Calculate the firm's net working capital.
(c) What is the number of "accounts receivable days" for Precision Manufacturing? Assume that the firm's year-end accounts receivable balance for the prior year was $950,000.
d) What is the firm's equity multiplier at the end of this year? Assume that the firm's prior year-end total assets balance was $6.3 million and the prior year-end total shareholders' equity balance was $2 million.
|
Concrete and uranium oxide mixture
: A BWR reactor core may contain up to 146 tons of uranium. Why does it not form a critical mass when molten? Are there any estimates of the critical mass of the resulting zirconium alloy, steel, concrete and uranium oxide mixture?
|
|
Certain distance from a negatively charged plate.
: Imagine a proton at rest a certain distance from a negatively charged plate. After being released it collides by the plate. Then imagine an electron at rest the same distance from a positively charged plate. Suppose that the amount of net charge of t..
|
|
Observable in normal life at the macroscopic level
: By what mechanism do quantum effects become observable in normal life at the macroscopic level? For instance, when two molecules "collide" is the momentum a probabilistic event wherein the end state is not unique?
|
|
What is the magnification of the motorcycle
: Presume the rear view mirror on a car is convex with a radius of curvature of 21 m. If a motorcycle is 49 m behind the car, what is the magnification of the motorcycle? How does your answer change when the motorcycle is 14 m behind the car?
|
|
Calculate the firm net profit margin percentage
: Calculate the firm net profit margin percentage.
|
|
Styrofoam ball of the same size as the lead ball takes
: A Styrofoam ball of the same size as the lead ball takes a longer time to reach the ground. Which of the following is a good explanation for this? Briefly, describe your reasoning. Air resistance is a significant force in this problem
|
|
Non conducting thin spherical shell of radius
: A non conducting thin spherical shell of radius 6.36 cm has a uniform surface charge density of 5.19 nC/m2. What is the total charge on the shell? What is the magnitude of the electric field at a distance of 2.35 cm from the center of the shell?
|
|
Compute the speed of sound in air at each temperature
: The coldest and hottest temperatures ever recorded in Lithuania are 45.2°F (230 K) and 99.5°F (311 K), correspondingly. Compute the speed of sound in air at each temperature
|
|
The sec web site
: The SEC web site.
|