Chapter 3
Problems 1-30
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Chapter 3
Question 1
Input area:
Output area:
Net working capital 2,710$
Current liabilities 3,950$
Chapter 3
Question 2
Input area:
Output area:
Total equity 9,300,000$
Total assets 15,600,000$
Total debt 6,300,000$
Profit margin 8%
Chapter 3
Question 3
Input area:
Output area:
The average collection period for an outstanding
accounts receivable was 28.23 days.
Accounts receivable 327,815$
Credit sales 4,238,720$
Chapter 3
Question 4
Input area:
Output area:
On average, a unit of inventory sat on the shelf
Ending inventory 483,167$
Cost of goods sold 4,285,131
Chapter 3
Question 5
Input area:
Output area:
Total debt ratio 0.46
Chapter 3
Question 6
Input area:
Output area:
Net income 550,000$
Sales per share 32.41$
Addition to retained earnings 375,000$
Cash dividends 175,000$
Total equity 4,800,000$
Common shares outstanding 145,000
Share price 79$
Chapter 3
Question 7
Input area:
Output area:
Equity multiplier 1.45
Total asset turnover 1.80
Profit margin 5.50%
Chapter 3
Question 8
Input area:
Output area:
Equity multiplier 1.81
Profit margin 4.60%
Total asset turnover 2.30
Return on equity 19.14%
Chapter 3
Question 9
Input area:
Output area:
Chapter 3
Question 10
Input area:
Output area:
Payables turnover 5.59
Cost of goods sold 43,821$
Accounts payable balance 7,843
Chapter 3
Question 11
Input area:
Output area:
Enterprise value 735,000$
Market capitalization 580,000$
Depreciation and amortization 135,000$
Chapter 3
Question 12
Input area:
Output area:
Debt/equity ratio 0.80
Return on assets 7.9%
Total equity 480,000$