1. A company has a debt-to-asset ratio of 75%, $213,000 in debt, and net income of $40,470. Calculate the return on capital.

2. ABC Co. has an average collection period of 40 days. Total credit sales for the year were $5,000,000. What is the balance of accounts receivable at the end of the fiscal year?

3. XYZ's accounts receivable turnover is 25x. Accounts receivable at the end of the year is $580,000. The average collection period is 90 days. What was the sales figure for the year assuming all sales are on credit?

4. A business has total assets of $2,050,000. You have $903,000 in long-term debt. Stockholders' equity is $703,000. What is the ratio of debt to total assets?

5. A company's long-term assets = $70,000, total assets = $360,000, inventory = $18,000, and current liabilities = $30,000

 Calculate current ratio and quick ratio

Answer rating: 100% (QA)

To calculate the return on capital we can use the following formula Return on Capital Net Income Interest Expense Debt Equity Given DebttoAsset Ratio ... View the full answer