What is its account receivable balance

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Question: 1. Webster Company reported sales for 2020 of $400,000. Webster Company listed $25,000 of inventory on its balance sheet. Using a 365-day year, how many days did Webster Company's inventory stay on the premises? How many times per year did Webster Company inventory turnover?

2. Roberts and Company's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Roberts and Company's common stock is currently selling at $150 per share, what is the book value per share and earnings per share?

3. Last year Smith and Company had an ROA of 35 percent, a profit margin of 12 percent, and sales of $4 million. What is Smith Company's total assets?

4. You are thinking of investing in Ski Sports, Inc. You have only the following information on the firm at year-end 2020: net income = $85,000, total debt = $1 million, and debt ratio = 70 percent. What is Ski's ROE for 2020?

5. A firm has EBIT of $400,000 and depreciation expense of $24,000. Fixed charges total $44,000. What is the firm's cash coverage ratio?

6. A firm has cash of 200,000, accounts receivable of 75,000, prepaid expenses of 12,500, accounts payable of 50,000, other current liabilities of 35,000, common stock of 375,000 and long term liabilities of 65,000. The firm also produced a profit of 20,000 during the last calendar year. What is the firms working capital?

7. Which company has the most risk from an investor's standpoint? Firm A has a PE of 84 times and Firm B has a PE of 16 times. Assume both firms operate in the same industry. Firm A has fewer shares outstanding than Firm B.

8. A firm has an ACP of 35 days and its annual sales are $5.3 million. What is its account receivable balance?

Reference no: EM132743618

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