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value 1.00 points 6. What is the book value per share at the end of this year? (

ID: 2582187 • Letter: V

Question

value 1.00 points 6. What is the book value per share at the end of this year? (Round your answer to 2 decimal places.) e per share References eBook &Resources; Worksheet Leaming Objective: 13-03 Compute and interpret financial Leaning ratios that managers use for asset management purposes. Difficulty: 2 Medium Learning Objective: 13-04 Compute and interpret financial ratios that managers use for debt management purposes Leaming Objective 13-05 Compute and interpret tinancial Learning Objective: 13-02 Compute and interpret financial ratios that managers use to ratios that managers use to assess proftitability assess liquidity. 1.00 points 7 What is the amount of working capital and the current ratio at the end of this year? (Round "Current ratio" to 2 decilmal places.) Working capital Current ratio

Explanation / Answer

6) Book value per share = Total shareholder's equity/Share outstanding

                                   = 650000/172000

Book value per share = 3.78 per share

7) Working capital = Current assets-Current liabilities

                           = 226800-90000

Working capital = 136800

Current ratio = Current assets/current liabilities

                   = 226800/90000

Current ratio = 2.52;1

8) Acid test ratio = (cash+account receivable)/Current liabilties

                         = (51000+98000)/90000

Acid test ratio = 1.65;1

9) Account receivable turnover = Credit sales/Average receivable

                                             = 1160000/84000

Account receivable turnover = 13.81

Average collection period = 365/account receivable turnover

                                     = 365/13.81

Average collection period = 26.43 days

10) Inventory turnover = Cost of goods sold/average inventory

                                = 672800/87900

Inventory turnover = 7.65

Average sale period = 365/inventory turnover

                               = 365/7.65

Average sale period = 47.71 days