As you can see, someone has spilled ink over some of the entries in the balance sheet

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As you can see, someone has spilled ink over some of the entries in the balance sheet and income statement of Transylvania Railroad (Table 28.12). Can you use the following information to work out the missing entries? (For this problem, use the following definitions: inventory turnover 5 COGS/average inventory; receivables collection period 5 average receivables/[sales/365].)

• Long-term debt ratio: .4.

• Times-interest-earned: 8.0.

• Current ratio: 1.4.

• Quick ratio: 1.0.

• Cash ratio: .2.

• Inventory turnover: 5.0.

• Receivables collection period: 73 days.

• Tax rate = .4.

Table 28.12

As you can see, someone has spilled ink over some
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Principles of Corporate Finance

ISBN: 978-0078034763

11th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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