Question $4$: $5$ marks

Your company received a $$7$ million order on the last day of the year.

You filled the order with $$3$ million worth of inventory. The customer

picks up the order the same day and pays $$2$ million up front in cash;

you also issue a bill for the customer to pay the remaining balance

of $$5$ million within $40$ days. Suppose your firm$$s tax rate is $0\%$

$($ignore taxes$).$ Based on this information, complete the table below:

Account Increase$/$Decrease$/$

No effect

Value of

effect $($$$)$

Revenues

Earnings

Receivables

Inventory

Cash

END OF ASSIGNMENT

Cash and Marketable

Securities

$$100$

Fixed Assets

$$283\mathrm{.}50$

Sales

$$1,000\mathrm{.}0$

Net Income

$$50\mathrm{.}00$

Quick Ratio

$2\mathrm{.}0$X

Current Ratio

$3\mathrm{.}0$X

Days Sales Outstanding

$40$ days

Return On Equity

$12\%$

Compute the company$$s $(1)$ accounts receivable $(2)$ current liabilities

$(3)$ current assets, $(4)$ total assets, $(5)$ Return On Assets, $(6)$ common

equity, and $(7)$ long$-$term debt.