Question

2. The following data apply to AL Kaiser & Company ($ million):
Cash and Equivalents
Fixed Assets
Sales
Net Income
Quick Ratio
Current Ratio
DSO
ROE
100.00
283.50
1,000.00
50.00
2X
3X
40 Days
12%
Kaiser has no preferred stock - Only common equity, current liabilities, and long-term debt.
Find Kaiser's (1) Account Receivable, (2) Current Liabilities, (3) Current Assets, (4) Total
Assets, (5) ROA, (6) common equity, and (7) long-term debt​

Answer 1

Answer:

Explanation:

Please post ur question clearly friend

Answer 2

Answer:

ACCOUNTS RECEIVABLE

Accounts Receivable = DSO * Average Sales per day

Accounts Receivable = 40.55 days * $ 1,000 millions/365 days = $ 111.10 millions

CURRENT ASSETS

Current Ratio = Current Assets/Current Liabilities

3 = Current Assets/$ 105.50

Current Assets = $ 316.50 millions

TOTAL ASSETS

Total Assets = Current Assets add Fixed Assets

Total Assets = $ 316.50 millions add $ 283.50 millions = $ 600 millions

ROA

Net Income= $50

Total Assets= $600

ROA = Net income/Total assets

ROA= 50/600

ROA= 8.33%

Common Equity

ROE= Net Income/ Common Equity

12%= $50/ Common Equity

Common Equity= $416.6 million

Quick Ratio

Quick Ratio = (Cash + A/c Reaceivables)/current Liabilities

Quick Ratio = (100+ 111.10)/105.5

Quick Ratio= 2%