Accounting

Chapter 3
3-1

Days gross sales Outstanding = Receivables / Average Sales per day or Receivables / (Annual Sales/365)
DSO 20 = Receivables / 20000
Receivables = DSO x Average periodic sales = 20 x $20,000
Receivables = $four hundred,000

3-2

rightfulness Multiplier = 2.5
Equity Ratio = 1/ Equity Multiplier
Equity Ratio = 1/2.5 = 0.40
Debt Ratio + Equity Ratio = 1
Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 or 60%

3-3
take hold prize per parting = mutual equity/ personas outstanding ($6 Billion/800M) = $7.5
Market/book ratio = market scathe per assign/book value per share ($75/$7.5) = 10
3-4
impairment/Cash flow ratio = Price per share / Cash flow per share
8 = Price per share / 3
Price per share = 8 x 3 = 24
Price/Earnings ratio = Price per share / Earnings per share
P/E ratio = Price per share / Earnings per share = 24 / 1.5
P/E ratio = 16
3-5
Profit Margin (PM) = Net Income / Sales
3 = Net income /$100M
Net income = Profit Margin x 100 (3 x 100) = $300M
Equity Multiplier = Total Assets / Common Equity
2.0 = $50M / Common Equity
Common Equity = $50M / 2.



0 = 25
pay on Common Equity (hard roe) = ROA (NI / TA) x EM (TA / CE)
ROE = (300/50) x (50/25) = 6 x 2
ROE = 12%

Chapter 4
4-1
The FV of a single sum for this problem is calculated
A lodge of 10,000 dollars with an interest rate of .10 compounded annually with 5 periods would be 16,105.10dolloars if compounded annually .
4-2
At = A0 x (1+r/100m)^ mt
5000=AO x (1+0.07/100*1)^1x20
5000=AO x(1.0007)^20
5000=AO x 20.014
249.83=Present value

4-6
The FV of a on ordinary annunity that pays 300 annually at .07 would be:
S = $300(((1 + .07)n - 1) / .07)
S = $1725
So, the difference $225 is because of 7% interest.
S = R(((1 + i)n - 1) / i) x (1 + i)
S = $1725 x 1.07
S = $1846

4-13
a. =$400 x 6.145= $2458
b. =$200 x 4.329= $865.80
c. = $200 x 5 eld =$2000
d.
$400 at 10% for 10 years is $400 x 6.145= $2458
$200 at 5% for 5 age is $200 x...If you want to get a full essay, order of magnitude it on our website: Ordercustompaper.com



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