How much did the Protek Company spend in acquisition of fixed assets during year
ID: 2725725 • Letter: H
Question
How much did the Protek Company spend in acquisition of fixed assets during year 2012? dollar 554 dollar 83 dollar 173 dollar S263 What was the internal growth rate for Protek Company for year 2012? 3.87 percentage 4.80 percentage 11.96 percentage 31.73 percentage Which of the following statements is correct? Protek Company bought back more of its common shares than newly issued it during year 2012. Protek Company's quick ratio has increased in 2012 compared to 2011. Protek Company's collected its receivables in less than 30 days in 2012. Protek Company paid its suppliers within 30 days in 2012.Explanation / Answer
Question 8:
Accumulated depreciation = 215 +90 million
= 305 million
Gross fixed assets 2012 = net fixed assets 2012 + accumulated depreciation
= 1118 +305 million
= 1,423 million
Fixed cost acquired = Gross fixed assets 2012 - Gross fixed assets 2011
= 1,423 million – 1250 million
= 173 million
Question 9:
ROA = net income / total assets
= 86 / 1879
= 4.58%
Addition to retained earnings = 448 -378
= 70 million
B = Addition to retained earnings/ Net income
= 70 million/ 86 million
= 0.8140
Internal growth rate = b x ROA / (1- b x ROA)
= 0.8140 x 0.0458/ ( 1- 0.8140 x 0.0458)
= 0.0373/ 0.9627
= 3.87%
Question 10)
Option B is correct.
Quick ratio =( cash + receivables) / current liabilities
Quick ratio 2011 = (107 +270)/(455)
= 0.8286
Quick ratio 2012 = (140+294)/486
=0.8930
Thus, quick ratio has increased from 0.8286 to 0.8930.
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