Question: Please assist with problems ST2 A-D, ST3 A-C, ST4 A-D AND ST5 A&B. I have included a picture of both problem pages to solve these
Please assist with problems ST2 A-D, ST3 A-C, ST4 A-D AND ST5 A&B. I have included a picture of both problem pages to solve these problems.
What is the 1 3-14 Self-Test Problems the following financial data for the Freemont Corporation are to be used in answering self-test problems 1-6. Balance Sheet ($000) Liabilities & Stockholders Equity $12,500 Accounts payable Assets $ 1,500 12,500 Cash Notes payable 2,500 Marketable securities Total current liabilities $25,000 15,000 22,000 Accounts receivable Long-term debt 33,000 Inventory Total liabilities $47,000 Total current assets $52,000 Common stock (par value) 5,000 Fixed assets (net) 35,000 Contributed capital in excess of par 18,000 Total assets $87,000 Retained earnings 17,000 Total stockholders' equity $40,000 Total liabilities and stockholders' equity $87,000 Income Statement ($000) Sales (all on credit) $130,000 Cost of sales 103,000 Gross margin $ 27,000 Operating expenses* 16,000 Earnings before interest and taxes $ 11,000 Interest expense 3,000 Earnings before taxes Income tax $ 8,000 Earnings after taxes 3,000 $ 5,000 "Includes $:2001000) in lease payments Other Information Stock price Book value/share $9.50 Number of shares $8.00 5,000 (000) ST1. Calculate the following liquidity ratios: a. Current ratio b. Quick ratioChapter 3: Evaluation of Financial Performance 105 ST2. Calculate the following asset management ratios: a. Average collection period b. Inventory turnover c. Fixed-asset turnover d. Total asset turnover ST3. Calculate the following financial leverage management ratios: a. Debt ratio b. Debt-to-equity ratio c. Times interest earned ratio d. Fixed-charge coverage ratio ST4. Calculate the following profitability ratios: a. Gross profit margin b. Net profit margin c. Return on investment d. Return on stockholders' equity ST5. Calculate the following market-based ratios: a. Price-to-earnings ratio b. Market price-to-book value ratio ST6. Express the return on stockholders' equity ratio as a function of the net profit margin, total asset turnover, and equity multiplier ratios. ST7. Thompson Electronics, Inc., is presently 100 percent equity financed and has assets of $100 million. Thompson's present net income is $9 million, and the company's marginal and average tax rates are 40 percent. In addition, Thompson has 4 million common shares outstanding, and its current annual dividend is $0.75 a share. Cur- rently, the company is able to borrow 10 percent perpetual debt, that is, debt that has no maturity date. What amount of 10 percent perpetual debt would Thompson have to borrow in order to increase its return on stockholders' equity to 15 percent, assuming that the debt proceeds are used to retire equity? 3-15 Problems* 1. Vanity Press, Inc., has annual credit sales of $1.6 million and a gross profit margin