Question: If you have this unsorted information from the general ledger of CAM Company as follows: net plants and equipment 420000 net sales 960000 accounts payables
If you have this unsorted information from the general ledger of CAM Company as follows:
| net plants and equipment | 420000 |
| net sales | 960000 |
| accounts payables | 120000 |
| bonds | 250000 |
| inventory | 250000 |
| retained earnings | 120000 |
| COMMON SHARES CAPITAL | 350000 |
| operation expenses | 169000 |
| accounts receivables | 160000 |
| short term investments | 50000 |
| Interests | 135000 |
| long term loans | 250000 |
| copyrights | 120000 |
| accruals | 35000 |
| shot term loans | 50000 |
| cash | 75000 |
| long term investments | 100000 |
| tax | 25% |
| cost of goods sold | 358000 |
| purchases | 250000 |
After sorting this information as income statements and balance sheets, find the answers to the below questions:
- Days sales outstanding (average collection period).
- Average payment period.
- Average age of inventory.
- Times interest earned.
- Total assets turnover.
- Debt to equity ratio.
- Quick ratio.
- Return on assets (ROA).
- Return on equity (ROE).
- If the firm decided to decrease the debt ratio to be 50%as the new target, how much the total liabilities must be decreased to reach the target ratio?
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