finance help 7

Use the following to answer questions 1-10: SHOW YOUR WORK!!!!!

MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31, 2003
ASSETS
Cash	$ 40,000
Accounts Receivable	60,000
Inventory	90,000
New Plant and Equipment	220,000
Total Assets	$410,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts Payable	$ 60,000
Accrued Expenses	40,000

Long-Term debt	130,000
Common Stock	60,000
Paid-In capita	20,000
Retained earnings	100,000
Total Liabilities and Stockholders’ Equity	$410,000
MEGAFRAME COMPUTER COMPANY Income Statement For the Year Ended December 31, 2003
Sales (all on credit)	$720,000
Cost of Goods Sold	500,000
Gross Profit	220,000
Sales and Administrative Expense	20,000
Depreciation	40,000
Operating Profit	160,000
Interest Expense	16,000
Profit before Taxes	144,000
Taxes (30%)	43,200
Net Income	$100,800

******SHOW YOUR WORK*******

1. Using the DuPont method, return on assets (investment) for Megaframe Computer is approximately

2. The firm’s average collection period is

BUS201

Take home exam 1 *****SHOW YOUR WORK*****

3. Times interest earned for Megaframe Computer is

4. Megaframe’s quick ratio is

5. Megaframe’s current ratio is

6. The firm’s debt to asset ratio is

7. What is Megaframe Computer’s total asset turnover?

8. Compute Megaframe’s after tax profit margin.

9. The firm’s return on equity is

10. The firm’s receivable turnover is