Managerial Accounting / Finance - 550 Words

Managerial Accounting /Finance (Coursework Sample) Content: Managerial Accounting /FinanceCandidateà ¢Ã¢â€š ¬s NameInstitutionà ¢Ã¢â€š ¬s NameQuestion one: Soaring Eagles Corp. has total current assetsof $11,160,000, current liabilities of $5,974,000 and a quick ratio of 0.89.What is its level of inventory? Answer: 5,840,000SolutionQuick ratio = (current assets à ¢Ã¢â€š ¬ inventories) / current liabilitiesFrom the formula above-Inventories= (quick ratio*current liabilities)-current Assets= (0.89*5,974,000)-11,160,000-Inventories = -5,843,140Inventories level for Soaring Eagles Corp = 5,843,140Question two: Boulder Mountain Ski Company has total assets of $434,400,000 and a debt ratio ofÂ0.27. Calculate the companyà ¢Ã¢â€š ¬s debt-to-equity ratio. Answer: 0.370SolutionDebt-to-equity ratio = total liabilities / total shareholders' equityAnd Debt ratio=total liabilities/ total assetsTherefore, total liabilities=0.27*434,400,000=117,288,000Shareholderà ¢Ã¢â€š ¬s equity=total assets-total liabilities=434,400,000-117288000= 317,112,000Debt to equity ratio= 117288000/317112000=0.369863Question three: The Timber Ridge Company has the following relationships:Sales/Total assets = 3.64;ÂROA = 0.0900WhatÂis Timber Ridgeà ¢Ã¢â€š ¬s net profit margin? Your answer: 0.0247SolutionROA=Net profit margin*Assets turnover ratioTherefore Net profit margin= ROA/Assets turnover ratio=0.0900/3.64=0.0247253Question four: Sawaya Company had depreciation and amortization expensesÂof $522,311, interest expenses of $114,077, and an EBITDA of $1,521,087 forÂthe year ended June 30, 2010. What is the Times Interest Earned for thisÂcompany? Your answer: 2.910SolutionTimes Interest Earned= EBIT/Interest expense= 1,521,087/522,311=2.9122247 13.3 times 8.8 times .6 times None of the above Question five: Archware Systems has total assets of $35.594billion, total debt of $9.678 billion, and net sales of $22.530 billion. Theirnet profit margin for the year was 0.21, while the operating profitmargin was 30 perce nt. WhatÂis Archwareà ¢Ã¢â€š ¬s net income? (Answer needs to be stated in billions. For example: 2.83) Your Answer: 4.730SolutionNet income= ROA*Total AssetsBut ROA= Net profit margin*Assets turnover ratioBut Assets turnover ratio= Sales/total assets=22.530/35.594=0.6329718Therefore, ROA= 0.21*0.6329718=0.1329241Net income= 0.1329241*35.594=4.7313004 billionQuestion six: Which one of the following stat...