E5 Asset Properes-Fleden E NFL Footbal Scores . NFLs e pROEct t Problems a x . A
ID: 2818164 • Letter: E
Question
E5 Asset Properes-Fleden E NFL Footbal Scores . NFLs e pROEct t Problems a x . Augusta Golf has the following information available Cash and equivalents Fixed Assets Sales Net Income Current Liabilities Current Ratio DSO 120,000 450,000 1,387,000 100,000 125,000 3 X 41 days 15.4% Augusta Golf has no preferred stock - only common equity. current liabilities and long-term debt CALCULATE THE FOLLOWING 1) Accounts Receivable 2) Inventory 3) Total Current Assets 4) Total Assets 5) ROA 6) Long-term Debt 7) Common EquityExplanation / Answer
DSO = (Account Receivables)/Sales * 365 = 41
Account Receivables = 1,387,000*41/365 = 155,800
Current Ratio = Current Assets;/ Current Liabilities = 3
(Cash& Cash Equivalent + Inventory + Receivables)/125000 =
Inventory = 3*125000 - 120,000 - 155800 = 99,200
Total Current Assets = 3* Current Liabilities = 3 * 125000 = 375000
Total Assets = Current assets + Fixed Assets = 375000 + 450000 = 825,000
ROA = Net Income/ Total assets = 100,000/825,000 = 12.12%
ROE = Net Income/ Equity = 15.4%
100,000/Equity = 15.4%
Equity = 100,000/15.4% = 649,350.65
Long Term Debt = Total Assets - Equity - Current Liabilities = 825,000 -649,350.65 - 125000 = 50,649.35
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