Be sure to show all work and/or use Excel formulas to demonstrate how you arrived at your answer.

(3-1) DSO

Greene Sisters has a DSO of 20 days. The companys average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.

(3-2) Debt Ratio

Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in long-term debt. What is the debt ratio?

(3-3) Market/Book Ratio

Winston Watchs stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winstons market/book ratio?

(3-4) Price/Earnings Ratio

Reno Revolvers has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio?

(3-5) ROE

Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?

Intermediate Problems 610

(3-6) DuPont Analysis

Gardial & Son has an ROA of 12%, a 5% profit margin, and a return on equity equal to 20%. What is the companys total assets turnover? What is the firms equity multiplier?

(3-7) Current and Quick Ratios

Ace Industries has current assets equal to $3 million. The companys current ratio is 1.5, and its quick ratio is 1.0. What is the firms level of current liabilities? What is the firms level of inventories?