Managerial Accounting

3-1Days Sales Outstanding
Green sisters has a DSO of 20 days. The confederations average daily barters are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.
DSO=Receivables/Average sale per day
Receivables = DSO x Average sale per day
Receivables = 20 x $20,000 = $400,000

3-2 Debt Ratio
Vigo Vacations has an equity multiplier of 2.5. The companys assets are financed with some combination of long-term debt and normal equity. What is the companys debt ratio?
Debt Ratio = summarise liabilities / Total assets
rectitude Multiplier = Total assets / Total equity
It stats that EM is 2.5, which means, that for both $1 equity they have $2.5 assets
Equity ratio = 1 / 2.5 = 0.40
Debt ratio + Equity Ratio = 1
Debt Ratio = 1 - Equity Ratio = 1 0.40 = 0.60%

3-3 Market/Book Ratio
Winston Washerss roue price is $75 per share. Winston has $10 cardinal in perfect assets. Its balance sheet shows $1 billion in menstruation liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 cardinal shares of common stock outstanding. What is Winstons market/book ratio?




Market respect of 800 million shares
$75 x 800 million = $60 billion
Book Value = Assets Liabilities
$10 billion - $1 billion CL - $3 billion LTD = $6 billion
Market /Book Ratio = $60 / $6
M/B = 10

3-4 PE Ratio
A company has an EPS of $1.50, a money execute per share of $3.00, and a price/ cash in feast ratio of 8.0. What is its P/E ratio?
Price/cash flow Ratio = Share price / Cash flow per share
Share price = 8.0 x $3
Share price = $24
P/E Ratio = Stock price / EPS
P/E Ratio = $24 / $1.50
P/E = 16

3-5. roe 
Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its gross revenue are $100 million and it has total assets of $50 million. What is its ROE?
Profit margin = NOI / Sales
NOI = $100 million x 3% = $30 million
Equity Multiplier = Total Assets / Total shareholders Equity
Total Stockholders Equity = $50...If you fatality to get a full essay, order it on our website: Orderessay



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