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For question 7 use the following information. You may need to calculate some of the...

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Finance

For question 7 use the following information. You may need to calculate some of the missing values to be able to answer all questions:

Income Statement:

Sales 1,000,000

Cost of goods sold ??

Depreciation 100,000

SG&A expense ??

EBIT ??

Interest expense 50,000

Tax expense 20,000

Net income ??

Balance Sheet:

Cash 100,000

Accounts Payable 100,000

Accounts Receivable 50,000

Other current liabilities ???

Inventory ???

Total current liabilities ???

Current Assets ??? Long term debt 100,000

Fixed Assets 200,000

Total Liabilities ???

Intangible Assets 0

Total equity ???

Total Assets ???

Notable financial ratios:

Cost of goods sold/revenue: 70%

SG&A expenses/revenue: 10%

Current ratio: .73333333

Inventory turns: 10

Dividend yield: 5%

Price earnings ratio: 20

A. What is the firms debt/equity ratio?

B. What is the firms return on equity?

C. What is the firms equity multiplier?

D. What is the firms total asset turnover?

E. What is the firms quick ratio?

F. What is the firms market to book ratio?

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