The quick ratio is equal to - Plugging in the relevant values for current assets, current liabilities, and inventories (calculated using the previous identity) yields a quick ratio of approximately Suppose that Niles could reduce its DSO from 18.25 to 12. Given the formula for DSO from the video, as well as the same annual sales of $6,250,000, the new value accounts receivable (associated with the new DSO) must be , all eise equal. The change (or the absolute value of the difference between the onginal and new values) in accounts receivable represents an amount of approximately in cash generated. As a result of the stock buy back, the ROA and ROE both uppose Niles uses the cash generated by the lower DSO to buy back common stock at book value, thus reducing common equity. a result of this new, lower, DSO, total debt bt/total capital ratio must and total capital This means that the total Note: The data and calculations are based on a 365-day year. Fill in the table with the appropriate values. (Hint: Use the formulas you learned in the video and exercises in the previous stage of the problem.) Hint: Recall that Total Liabilities and Equity = Total Assets Long term debt is Suppose that Niles could reduce its DSO from 18.25 to 12 , and use the cash that was generated to buy back common stock at book value. Ise the table to indicate the change in accounts recervable, ROA, ROE, and total debt/total capital ratio. Ch 04-Vidco Lesson - Analysis of Financial Statements The current ratio is equal to assets value of Plugging in the relevant values for the current ratio and current liablities, and then solving yields a current Mdding foxed assets to current assets yields a value of total assets of The days sales outstanding (DSO) ratio is equal to accounts recervoble balance of Plugging in the relevant values for the DSO ratio and sales, and then solving velds an Retum on eguity (ROE) is to appraximately Juity (calculated using the previous identify) and then solving for long-term debt, yields a long-term debt of um on assets (ROA) is equal to the product of profit margin multiplied by total assets turnover, which is equivalent to vant values for net income and total assets yields an ROA of approximately The quick ratio is equal to - Plugging in the relevant values for current assets, current liabilities, and inventories (calculated using the previous identity) yields a quick ratio of approximately Suppose that Niles could reduce its DSO from 18.25 to 12. Given the formula for DSO from the video, as well as the same annual sales of $6,250,000, the new value accounts receivable (associated with the new DSO) must be , all eise equal. The change (or the absolute value of the difference between the onginal and new values) in accounts receivable represents an amount of approximately in cash generated. As a result of the stock buy back, the ROA and ROE both uppose Niles uses the cash generated by the lower DSO to buy back common stock at book value, thus reducing common equity. a result of this new, lower, DSO, total debt bt/total capital ratio must and total capital This means that the total Note: The data and calculations are based on a 365-day year. Fill in the table with the appropriate values. (Hint: Use the formulas you learned in the video and exercises in the previous stage of the problem.) Hint: Recall that Total Liabilities and Equity = Total Assets Long term debt is Suppose that Niles could reduce its DSO from 18.25 to 12 , and use the cash that was generated to buy back common stock at book value. Ise the table to indicate the change in accounts recervable, ROA, ROE, and total debt/total capital ratio. Ch 04-Vidco Lesson - Analysis of Financial Statements The current ratio is equal to assets value of Plugging in the relevant values for the current ratio and current liablities, and then solving yields a current Mdding foxed assets to current assets yields a value of total assets of The days sales outstanding (DSO) ratio is equal to accounts recervoble balance of Plugging in the relevant values for the DSO ratio and sales, and then solving velds an Retum on eguity (ROE) is to appraximately Juity (calculated using the previous identify) and then solving for long-term debt, yields a long-term debt of um on assets (ROA) is equal to the product of profit margin multiplied by total assets turnover, which is equivalent to vant values for net income and total assets yields an ROA of approximately