Provide the table below answer these questions. Income Balance Revenue $10,000,000 Cash $200,000 COGS $7,500,000 Accounts
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Question:
Income | Balance | |||
Revenue | $10,000,000 | Cash | $200,000 | |
COGS | $7,500,000 | Accounts receivable | $1,200,000 | |
Gross profit | $2,500,000 | Inventory | $400,000 | |
Total current assets | $1,800,000 | |||
Total SG&A | $1,850,000 | Total fixed assets | $1,000,000 | |
EBITDA | $650,000 | Total assets | $2,800,000 | |
Depreciation | $75,000 | Accounts payable | $600,000 | |
Interest | $75,000 | Other short term liabilities | $200,000 | |
Net profit | $500,000 | Total short term liabilities | $800,000 | |
Total long term debt | $600,000 | |||
Total liabilities | $1,400,000 | |||
Total owners equity | $1,400,000 | |||
Total liabilities & equity | $2,800,000 | |||
What is the company's Days Sales Outstanding (assuming all sales on credit)? | ||||
If DSO decreased by 2 days, what would Accounts Receivable be? | ||||
If DSO decreased by 2 days, what would Cash be? | ||||
If DSO decreased by 2 days, what would Net Profit be? | ||||
What is the company's Days Inventory Outstanding? | ||||
If DIO decreased by 2 days, what would Inventory be? | ||||
If DIO decreased by 2 days, what would Cash be? | ||||
If DIO decreased by 2 days, what would Net Profit be? | ||||
Assuming that COGS equal Purchases, what is the company's Days Payables Outstanding? | ||||
If DPO decreased by 2 days, what would Accounts Payable be? | ||||
If DPO decreased by 2 days, what would Cash be? | ||||
If DPO decreased by 2 days, what would Net Profit be? | ||||
What is the company's Cash Conversion Cycle? | ||||
What is the company's Current Ratio? | ||||
What is the company's Quick Ratio? | ||||
What is the company's Return on Assets? | ||||
What is the company's Return on Equity? | ||||
If we are willing to go as high as a Debt to EBITDA ratio of 2 (not counting Accounts Payable), how much additional debt could we assume? | ||||
Using our simple approach to calculating funding needs, to increase revenues by 20%, how much additional funding do we need regardless of source? | ||||
If gross margin increased by 1% (of revenues) with the same revenues, what would net profit be? | ||||
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
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