FCF 7thE Chapter03 Stu

8/11/2019 FCF 7thE Chapter03 Stu

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Chapter 3Problems 3,7,13,14,16

Input boxes in tan

Output boxes in yellow

Given data in blue

Calculations in red

Answers in green


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Chapter 3Question 3

Input area:

Accounts receivable 421,865$Credit sales 2,873,150

Output area:

Receivables turnover = 6.81

Days' sales in receivables = 53.59

The average collection period for an outstandingaccounts receivable was 53.59 days.


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Chapter 3Question 7

Input area:

Equity multiplierTotal asset turnoverProfit margin

Output area:

Return on equity = 0.00%


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Input area:

2004 2005

CashAccounts receivableInventoryNet plant and equipmentAccounts payableNotes payableLong-term debtCommon stock and paid in surplusRetained earnings

Output area:

2004 #13 2005 #13 #14

AssetsCurrent assets

Cash -$ #DIV/0! -$ #DIV/0! #DIV/0!Accounts receivable - #DIV/0! 0 #DIV/0! #DIV/0!Inventory - #DIV/0! 0 #DIV/0! #DIV/0!

Total -$ #DIV/0! -$ #DIV/0! #DIV/0!Fixed assets

Net plant and equipment - #DIV/0! - #DIV/0! #DIV/0!Total assets -$ #DIV/0! -$ #DIV/0! #DIV/0!

Liabilities and owners' equity

Current liabilities

Accounts payable -$ #DIV/0! -$ #DIV/0! #DIV/0!

Notes payable - #DIV/0! 0 #DIV/0! #DIV/0!

Total -$ #DIV/0! -$ #DIV/0! #DIV/0!

Long-term debt - #DIV/0! 0 #DIV/0! #DIV/0!

Owners' equity

Common stock and paid-in surplus -$ #DIV/0! -$ #DIV/0! #DIV/0!

Accumulated retained earnings - #DIV/0! 0 #DIV/0! #DIV/0!

Total -$ #DIV/0! -$ #DIV/0! #DIV/0!

Total liabilities and owners' equity -$ #DIV/0! -$ #DIV/0! #DIV/0!

Questions 13-14

Chapter 3


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Chapter 3

Input area:

2004 2005Cash -$ -$

Accounts receivable - -Inventory - -Net plant and equipment - -

Accounts payable - -Notes payable - -Long-term debt - -Common stock and paid in surplus - -Retained earnings - -

Output area:

Question 16


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2004 Sources/Uses 2005

AssetsCurrent assets

Cash -$ - S -$Accounts receivable - - S 0

Inventory - - S 0Total -$ - S -$

Fixed assets

Net plant and equipment - - S -Total assets -$ - S -$

Liabilities and owners' equity

Current liabilities

Accounts payable -$ - U -$

Notes payable - - U 0

Total -$ - U -$

Long-term debt - - U 0

Owners' equity

Common stock and paid-in surplus -$ 0 -$

Accumulated retained earnings - - U 0

Total -$ - U -$Total liabilities and owners' equity -$ - U -$

The firm used -$ in cash to acquire new assets. It raised this amount of cash

by increasing liabilities and owners' equity by the same amount. In particular, the

needed frunds were raised entirely by internal financing (on a net basis), out of the

additions to retained earnings.

2003 2004a. Current ratio #DIV/0! #DIV/0!

b. Quick ratio #DIV/0! #DIV/0!

c. Cash ratio #DIV/0! #DIV/0!

d. NWC to total assets ratio #DIV/0! #DIV/0!

e. Debt-equity #DIV/0! #DIV/0!

Equity mulitplier #DIV/0! #DIV/0!

f. Total debt ratio #DIV/0! #DIV/0!

Long-term debt ratio #DIV/0! #DIV/0!

FCF 7thE Chapter03 Stu

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