Problem 3.01 – Calculating Liquidity Ratios
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Calculate the current and quick ratio.
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Calculate the current and quick ratio.
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Figure out the net income, ROA, and ROE.
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Calculate the receivables turnover and the days’ sales in receivables. How long did it take customers to pay off their accounts during the past year?
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Determine the inventory turnover, days’ sales in inventory and the length of time that a unit of inventory sat on the shelf.
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What is its debt-equity ratio and what is its equity multiplier?
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What are the earnings per share, dividends per share, book value per share, market-to-book ratio, price-earnings ratio, and price-sales ratio for Bolton Corporation, given its additions to retained earnings, cash dividends, total equity, and common stock outstanding, and considering its sales?
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What is its ROE given the equity multiplier, total asset turnover, and profit margin?
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What is the debt-equity ratio?
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Did cash go up (source) or go down (use), and by how much? Classify each event as a source or as a use.
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How long did it take to pay off its suppliers?
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