Question: I need help with the last three E, F, G. Please help Expense Control Ratios Wages and salaries/Net Sales = $52/$600= 0.0866 Overhead expenses/Net Sales

I need help with the last three E, F, G. Please help
- Expense Control Ratios
Wages and salaries/Net Sales = $52/$600= 0.0866
Overhead expenses/Net Sales =
29/600= 0.0483
Depreciation expenseset sales =
12/600= 0.02
Interest expenseet sales =
28/600=0.0466
Cost of goods sold/ net sale =
445/600=.7416
Taxes/ net sales=
1/600= 0.0016
Selling, admin., and other expenses/ net sales = 28/600 = 0.0466
- Operating Efficiency: Measure of a Business Firms Performance Effectiveness
Inventory turnover ratio=
COGS/Invent. =
445/128= 3.467
Net sales/ Total assets = 600/ 725=0.8275
Net sales / fixed assets = 600/286= 2.097
Net sales/ accounts receivable= 600/155= 3.8709
Average = (155) / (600/360)= 85.87 collection period
- Marketability of the Customers Product or Service
GPM= 600-445/600=0.2583
NPM= 5/600=0.0083
- Coverage Ratios: Measuring the Adequacy of Earnings
Interest coverage = 34/28= 1.214
Coverage of principal and interest payments =
34/ 28+51/(1-.35)= 31.93%
- Liquidity indicators for business customers
Current Ratio =
- Profitability indicators for business customers
- The Financial leverage factor:
1. From the data given in the following table, please construct as many of the financial ratios discussed in this chapter as you can and then indicate what dimension of a business firm's performance each ratio represents. Business Assets Cash account $60 Annual Revenue and Expense Items Net sales $600 Accounts receivable 155 Cost of goods sold Inventories 128 Wages and salaries Fixed assets 286 Interest expense Miscellaneous assets 96 Overhead expenses 725 Depreciation expenses Liabilities and Equity Selling, administrative, and other expenses Short-term debt: 108 Before-tax net income Accounts payable 117* Taxes owed Notes payable 325* After-tax net income Long-term debt (bonds) Equity capital 160 725 *Annual principal payments on bonds and notes payable total $55. The firm's marginal tax rate is 35 percent. 15 The financial ratios that could be computed given the data in this problem fall under the following categories
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
