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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What are the current ratio and the quick ratio of SDJ, Inc. based on its net working capital, current liabilities, and inventory?
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Figure out the net income, ROA, and ROE.
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Given sales, total assets, total debt, and a profit margin, compute 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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The Dahlia Corporation wants to calculate its: a. Receivables turnover, b. Days’ sales in receivables, c. Average collection period in days, using its current accounts receivable balance and credit sales for 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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Calculate the inventory turnover, days’ sales in inventory, and how long it took a unit of inventory to sit on the shelf.
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What is its debt-equity ratio and what is its equity multiplier?
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Determine the debt-equity ratio and the equity multiplier.
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