60.1K

Verified Solution

Link Copied!

Company Dreamworks Pixar Universal Expenses Total Assets $ 48,000 $105,000 106,000 163,000 25,000 94,000 Net Income Total Liabilities $45,000 $ 98,780 66,000 149,600 7,600 40,800 a. Compute the debt ratio for each of the three companies. (Round your answers to 2 decimal places.) Debt Ratio Company Dreamworks Poxar Universal b. Which company has the largest financial leverage? Largest financiat everage Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal place.) Company Net Income Net Sales Profit Margin (%) a $ 6,248 $ 52,950 b 102,734 471.255 C 108,050 301.815 d. 73,998 1.720,875 86,801 513,615 Which of the five companies is the most profitable according to the profit margin ratio? Company a Company b Company Company d Company e The following is information for Palmer Co. Year 3 Cost of goods sold $593,825 Ending inventory 101,400 Year 2 $376,650 91,750 Year 1 $341,300 96,500 Use the above information to compute Inventory turnover for Year 3 and Year 2, and its days' sales in Inventory at December 31, Year 3 and Year 2 (a) Use the above information to compute inventory turnover for Year 2, and its days' sales in Inventory at December 31, Year 2. Numerator 1 Denominator Ratio Inventory turnover Days' sales in inventory (b) Use the above information to compute Inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Numerator Denominator Ratia Inventory turnover Days' sales in inventory

Answer & Explanation Solved by verified expert

See Answer