Finance Help

Use the following to answer questions 1-10:                       SHOW YOUR WORK!!!!!

MEGAFRAME COMPUTER COMPANY

Balance Sheet

As of December 31, 2003

ASSETS

Cash

$  40,000

Accounts Receivable

60,000

Inventory

90,000

New Plant and Equipment

  220,000

Total Assets

$410,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable

$  60,000

Accrued Expenses

40,000

Long-Term debt

130,000

Common Stock

60,000

Paid-In capita

20,000

Retained earnings

  100,000

   Total Liabilities and Stockholders' Equity

$410,000

MEGAFRAME COMPUTER COMPANY

Income Statement

For the Year Ended December 31, 2003

Sales (all on credit)

$720,000

Cost of Goods Sold 

  500,000

Gross Profit

220,000

Sales and Administrative Expense

20,000

Depreciation

    40,000

Operating Profit

160,000

Interest Expense

    16,000

Profit before Taxes

144,000

Taxes (30%)

    43,200

Net Income

$100,800

           ******SHOW YOUR WORK*******

1. Using the DuPont method, return on assets (investment) for Megaframe Computer is approximately 

2.  The firm's average collection period is 

BUS201

Take home exam 1         *****SHOW YOUR WORK*****

3. Times interest earned for Megaframe Computer is 

4. Megaframe's quick ratio is 

5. Megaframe's current ratio is 

6. The firm's debt to asset ratio is 

7. What is Megaframe Computer's total asset turnover? 

8. Compute Megaframe's after tax profit margin. 

9. The firm's return on equity is 

10. The firm's receivable turnover is