Reference no: EM132976056
Question - Emma Corporation reports the following numbers:
Total sales $800,000
Invested capital $500,000
Net operating profit less adjusted taxes $100,000
Net operating profit $130,000
Interest expense $30,000
Lease expense $20,000
Total long-term debt $300,000
Total Assets $700,000
Market price per share $100
Earnings per share $5
Book value per share $20
1. What is Emma's return on invested capital?
2. What is Emma's capital turnover ratio?
3. What is Emma's net operating profit less adjusted taxes return on sales?
4. What is Emma's times interest earned ratio?
5. What is Emma's fixed charge coverage ratio?
6. What is Emma's long-term debt to total assets ratio?
7. What is Emma's price to earnings ratio?
8. What is Emma's price to book value ratio?
Fred Corporation reports the following numbers:
Operating assets $600,000
Financial assets $500,000
Total assets $1,100,000
Operating current liabilities $100,000
Financial liabilities $700,000
Stockholder's equity $300,000
Total liabilities and equity $1,100,000
9. What is the dollar value of Fred's net operating assets or invested capital?
10. What is the dollar value of Fred's net financial holdings? And would this be a net financial asset or a net financial liability?
11. At what number does the balance sheet balance? Or put another way what is the new asset number and the new liabilities and equity number?