Question: X Meme 4-15 RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $2.000, a net income of $15,000, and the following balance sheet:

X Meme 4-15 RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $2.000, a net income of $15,000, and the following balance sheet: Cash $10,000 $ Receivables 20.000 Inventore 550.000 5210.000 Long term Netfied assets Comment Total 5000 Today 5300.000 The mw owner thinks that inventories are excess and can be lowered to the point where the current ratio is equal to the industry average 25%, without affecting sales are income. If inventories are sold and not replaced (thus reducing the current ratio to 25xi the funds generated are used to reduce common equity stock can be purchased at book valel and if no other changes occur, by how much will the change? What will be the firm's mw quick ratio 2000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

4-15 RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $200,000, a net income of $15,000, and the following balance sheet: Cash $ 10,000 Accounts payable $ 30,000 Receivables 50,000 Notes...

4-15 RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $200,000, the tax rate will be 35% a net income of $15,000, and the following balance sheet: Cash Receivables Inventories Total current...

Problem 4-15 RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $150,000, a net income of $16,500, and the following balance sheet: Cash $38,520 Accounts payable $39,240 Receivables 43,920...

4-15 RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $200,000, a net income of $15,000, and the following balance sheet: The new owner thinks that inventories are excessive and can be...

15. Problem 4.15 (Return on Equity and Quick Ratio) Lloyd Inc. has sales of $350,000, a net income of $17,500, and the following balance sheet: if no other changes occur, by how much will the ROE...

RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $200,000, a net income of $15,000, and the following balance sheet: Cash $ 10,000 Accounts payable $ 30,000 Receivables 50,000 Notes payable...

RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $600,000, a net income of $54,000, and the following balance sheet: Cash $97,680 Accounts payable $126,720 Receivables 208,560 Notes payable...

0 Chapter 4 Assignment 12 13. Click here to read the eBook: Profitability Ratios 14. 15. 16. 17. Problem Walk-Through RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $700,000, a net income...

RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $450,000, a net income of $22,500, and the following balance sheet: Cash $112,455 Accounts payable $107,730 Receivables 183,330 Notes payable...

The Web site shown below provides historical information on the exchange rates of currencies used throughout the world. Review the changes in exchange rates for the last few years....

Why are dental and eye insurance typically not recommended? Whats the best alternative for meeting these expenses?

Name some situations for the application of the learning curve theory.

Which statute provides for the Federal Government small business programs? Business Improvement Act Buy American Statute Fair Housing Act Small Business Act Mark for follow up

A price reduction, or no charge at all, if this is appropriate?

In what ways does your organization create customer de - pendency relationships that may discourage complaints?

What dependency or unequal relationships exist within your organization? How are people who feel dependent upon someone else able to give appropriate feedback without being threatened?