Finance

Question 1 (Worth 2 points) introduce 4-1 (The following data apply to the problem(s) below.) The balance sheet and income statement shown below atomic number 18 for Pettijohn Inc. Note that the firm has no amortisation charges, it does not necessitate any assets, none of its debt must be retired during the next 5 classs, and the notes collectible will be rolling over. Balance piece of paper (Millions of $) Assets2007 Cash and securities$ 1,554.0 Accounts receivable9,660.0 Inventories13,440.0 Total oc stop assets$24,654.0 boodle kit and boodle and equipment17,346.0 Total assets$42,000.0 Liabilities and Equity Accounts payable$ 7,980.0 Notes payable5,880.0 Accruals4,620.0 Total genuine liabilities$18,480.0 Long-term bonds10,920.0 Total debt$29,400.0 Common stock3,360.0 carry clams9,240.0 Total common equity$12,600.0 Total liabilities and equity$42,000.0 Income rumor (Millions of $)2007 Net gross sales$58,800.0 Operating costs excep t deprn$54,978.0 wear and tear$ 1,029.0 Earnings bef int and taxes (EBIT)$ 2,793.0 Less interest1,050.0 Earnings before taxes (EBT)$ 1,743.0 Taxes$ 610.1 Net income$ 1,133.0 separate data: Shares outstanding (millions)175.00 Common dividends$509.83 Int measure on notes payable & L-T bonds6.

25% Federal plus state income tax rate35% closing stock price$77.69 Refer to Exhibit 4-1. What is the firms days sales outstanding? Assume a 360-day year for this calculation. 48.17 50.71 53.38 56.19 59.14 This is a illuminate answer Question Information: DSO = Accounts receivable/(Sales/360) = 59.14 Points earned on this question: 2 __________________________ ______________ Question 2 (Worth 2 points) ! Amram Companys current ratio is 1.9. Considered alone, which of the following actions would rationalize the companys current ratio? bear using short-term notes payable and drill the getting even to reduce accruals. Borrow using short-term notes payable and use the proceeds to reduce long-term debt....If you want to sire a beat essay, order it on our website: OrderEssay.net

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