Use these financial statements for a manufacturing company to answer the following questions. Use the effective...

  

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Use these financial statements for a manufacturing company to answer the following questions. Use the effective tax rate for tax effects and assume cash is 75% operating assets and 25% financing assets. Round all answers to two decimal places and input percentages as decimals, e.g. 35% as 0.35. Income statement Sales Cost of goods sold SG&A expense Interest income Interest expense Income tax expense Net income 2020 850 (300) (120) 10 (25) (111) 304 Balance sheet Cash Inventory Accounts receivable PP&E Accounts payable Notes payable Owner's Equity 12/31/19 275 130 100 770 (225) (350) 700 Using the class data set, calculate asset turnover (ATO) using "revt" as the top line sales (or revenue) and assume that all assets are operating assets and all liabilities except for accounts payable "ap" are financing liabilities. Use gvkey and permno together as the unique company id. Remove any observations that do not have a calculated ATO using this approach. At this point, what is the 75th percentile of the ATO distribution for the full data set? Use these financial statements for a manufacturing company to answer the following questions. Use the effective tax rate for tax effects and assume cash is 75% operating assets and 25% financing assets. Round all answers to two decimal places and input percentages as decimals, e.g. 35% as 0.35. Income statement Sales Cost of goods sold SG&A expense Interest income Interest expense Income tax expense Net income 2020 850 (300) (120) 10 (25) (111) 304 Balance sheet Cash Inventory Accounts receivable PP&E Accounts payable Notes payable Owner's Equity 12/31/19 275 130 100 770 (225) (350) 700 Using the class data set, calculate asset turnover (ATO) using "revt" as the top line sales (or revenue) and assume that all assets are operating assets and all liabilities except for accounts payable "ap" are financing liabilities. Use gvkey and permno together as the unique company id. Remove any observations that do not have a calculated ATO using this approach. At this point, what is the 75th percentile of the ATO distribution for the full data set?

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