Q2. Merve plans to start a bookstore business. She has obtained the industry ratios to prepare...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q2. Merve plans to start a bookstore business. She has obtained the industry ratios to prepare the balance sheet and forecasted a net income of $140,000. Complete the balance sheet using the ratios given and interpret briefly the performance for the first year. Merve bookstore company Proforma Balance sheet for the year ended December 31, 2021, Liability&sh's equity t. current liabilities long term debt. total debt net profit Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Equity Tot.liab, and Sh's eq. current ratio: 1.6 Collection period: 58 days. inventory turn:6(based on sales) current liab.to equity: 0.4 total debt to total equity: 1 ROE: 0.1 net profit margin: 0.05 Q2. Merve plans to start a bookstore business. She has obtained the industry ratios to prepare the balance sheet and forecasted a net income of $140,000. Complete the balance sheet using the ratios given and interpret briefly the performance for the first year. Merve bookstore company Proforma Balance sheet for the year ended December 31, 2021, Liability&sh's equity t. current liabilities long term debt. total debt net profit Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Equity Tot.liab, and Sh's eq. current ratio: 1.6 Collection period: 58 days. inventory turn:6(based on sales) current liab.to equity: 0.4 total debt to total equity: 1 ROE: 0.1 net profit margin: 0.05
Expert Answer:
Answer rating: 100% (QA)
Net income is 140000 Net profit margin 005 Thus Revenue is 140000005 2800000 Inventory turnover is 6 ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Let k be an integer and set Compute (a) ||Ak|| (b) ||Ak||2 (c) p(Ak) (d) Explain why every Ak is a convergent matrix, even though their matrix norms can be arbitrarily large. (e) Why does this not...
-
Let Ipq denote the n n matrix with (p, q)-entry equal to 1 and all other entries 0. Show that: If A = [aij], then Ipq AIrs = aqrIps all p, q, r, and s.
-
Let E and F be n n elementary matrices and let C = EF. Is C nonsingular? Explain.
-
Daniel agreed to erect an apartment building for Steven for $12 million and that Daniel would suffer a deduction of $12,000 per day for every day of delay. Daniel was twenty days late in finishing...
-
Using the information in E6-12, prepare journal entries to record the transactions, assuming Soli-tare uses a perpetual inventory system. Info E6-12 Jan. 6 Sold goods for $ 100 to Wizard Inc. with...
-
Channel stuffing is best described as: A. pushing product onto dealers before the end of a fiscal period. B. exaggerating loan losses, only to reverse these in a subsequent fiscal period. C....
-
When to use the official form complaints?
-
Explain the competitive process when a firm earns a positive economic profit.
-
Write one short paragraphs about the target market segments for your client and why you think this company and product will be successful. Are there economic, social, or other trends that make this a...
-
Harper Morgan owns White Mountain Assessments in Laconia, New Hampshire. The standard workweek is 40 hours. For the weekly payroll ending September 9, 2022, checks dated September 14, 2022, complete...
-
Draw the structure of the compound that is consistent with the H NMR data below. (Assume that long-range coupling is not observed.) *Suggestion: Find "end groups" (like methyls) and work as far as...
-
Will widening the distance between the control limits on a mean chart increase or decrease producer's risk?
-
What types of operations exhibit the greatest natural variation in their output? How useful is statistical process control to these operations?
-
The composite bar consists of a 20-mm-diameter A-36 steel segment AB and 50-mm-diameter red brass C83400 end segments DA and CB. Determine the displacement of A with respect to B due to the applied...
-
Which represents the greatest threat to the success of an operation, the producer's or the consumer's risk?
-
Three kanban cards are hanging on a board next to a work area, while another identical kanban card is attached to the container that an employee is busy filling with parts created in that work area....
-
Determine - < 1, 1, 2) 3,2,-4).
-
Assume you are the accountant for Catalina Industries. John Catalina, the owner of the company, is in a hurry to receive the financial statements for the year ended December 31, 20X1, and asks you...
-
Justify the triangle inequality for (a) The L1 norm (3.31); (b) The L norm (3.32)
-
Find the first and second derivatives of a e-|x| b 2|x| - |x - 1| c |x2 + x| d a sgn(x2 - 4) e sin |x| f |sin x | g sgn(sin x)
-
Let q(x) = xrTx be a quadratic form. Prove that the minimum value of q(x) is either 0 or - .
-
Using Program14.m(fourth-order Runge-Kutta method), solve Problem 11.18 with \(c=1\). Data From Problem 11.18:- Using the central difference method, find the response of the two-degree-of-freedom...
-
Using Program15.m (central difference method), solve Problem 11.20. Data From Problem 11.20:- The equations of motion of a two-degree-of-freedom system are given by \(2 \ddot{x}_{1}+6 x_{1}-2...
-
Using Program16.m(Houbolt method), solve Problem 11.20. Data From Problem 11.20:- The equations of motion of a two-degree-of-freedom system are given by \(2 \ddot{x}_{1}+6 x_{1}-2 x_{2}=5\) and...
Study smarter with the SolutionInn App