Determine and calculate the companys return on equity

Assignment Help Managerial Accounting

Reference no: EM132475993

Long-term debt ratio 0.3

Times interest earned 10.0

Current ratio 1.2

Quick ratio 1.0

Cash ratio 0.4 Inventory turnover 3.0

Average collection period 73 days

Problem 1: Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)

INCOME STATEMENT (Figures in $ millions)

Net sales:

Cost of goods sold:

Selling, general, and administrative expenses 20.00

Depreciation 30.00

Earnings before interest and taxes (EBIT):

Interest expense:

Income before tax:

Tax (35% of income before tax):

Net income:

Reference no: EM132475993

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