Fondren Machine Tools has total assets of $3,310,000 and current assets of $879,000. It turns over its fixed assets 3.6 times per year. Its return on sales is 4.8 percent. It has $1,750,000 of debt. What is its return on stockholders’ equity?
Answer to relevant QuestionsBaker Oats had an asset turnover of 1.6 times per year.a. If the return on total assets (investment) was 11.2 percent, what was Baker’s profit margin?b. The following year, on the same level of assets, Baker’s assets ...A firm has sales of $3 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $285,000. What is the average collection period? (Use a 360-day year.)A firm has net income before interest and taxes of $193,000 and interest expense of $28,100.a. What is the times-interest-earned ratio?b. If the firm’s lease payments are $48,500, what is the fixed charge coverage?The Griggs Corporation has credit sales of $1,200,000. Given the following ratios, fill in the following balance sheet.Total assets turnover 2.4 timesCash to total assets 2.0%Accounts receivable turnover 8.0 ...Why are Treasury bills a favorite place for financial managers to invest excess cash?
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