Calculating Profitability Ratios
Date: 2015-10-07; view: 565.
What is the quick ratio?
What is the current ratio?
Calculating Liquidity Ratios
How will it change if the goods will be purchased on credit for 500hrn?
How will it change if debtors pay 500hrn?
Define current liquidity ratio.
Enterprise balance sheet (January, 1, 2012, thnd., hrn.)
Calculate liquidity ratios, net working capital and correlation of long-term debt and equity
What is net working capital?
What does the balance sheet look like? What is shareholder's equity?
2.The following results of activity of firm are known:
Cash - 300 000 $
Securities - 200 000 $
Accounts receivable – 1000 000$
Inventories - 1000 000$
Fixed assets – 3700 000$
Floating debt – 1000000$
Account payable - 300000$
Long-term debt - 1200000$
Common stock - 3 700000$
3. Define working capitalif it is known that sum of current liabilities makes up 573100 hrn. and current liquidity ratio makes up 2.2. How will current liquidity ratio (CR) and net working capital change if the company reduces payable account by covering in cash 67500 hrn.
| Assets | Liabilities | ||
| Fixed assets | 13 740 | Equity share | 4 500 |
| Cash | 1 000 | Retained income | 10 000 |
| Quick securities | 2 900 | Long – term liabilities | 2 000 |
| Bill receivable | Notes payable | 1 700 | |
| Inventories | 2 000 | Account payable | 2 400 |
| Balance | 20 600 | Balance | 20 600 |
A firm has net working capital of $500, current liabilities of $1800, and inventory of $600.
A firm has sales of $5 million, total assets of $9 million, and total debt of $3 million. If the profit margin is 11 percent, what is net income? What is ROA? What is ROE?
7.Firm's assets make up 800 mln. hrn. It pays off 25% for debts on average. Capital structure of a firm – 50% (owned capital) and 50% (land capital). Profit received before payment of interest and taxes (EBIT) makes up 120 mln. hrn.
• Define net profit.
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