Not register? Register Now!
Essay Available:
You are here:
Pages:
2 pages/≈550 words
Sources:
No Sources
Level:
Other
Subject:
Accounting, Finance, SPSS
Type:
Coursework
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
\$ 11.23
Topic:

# Managerial Accounting /Finance (Coursework Sample)

Instructions:

calculating of managerial accounting problems

source..
Content:

Managerial Accounting /Finance
Candidateâ€™s Name
Institutionâ€™s Name
Question 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: 5,840,000
Solution
Quick ratio = (current assets â€“ inventories) / current liabilities
From the formula above
-Inventories= (quick ratio*current liabilities)-current Assets
= (0.89*5,974,000)-11,160,000
-Inventories = -5,843,140
Inventories level for Soaring Eagles Corp = 5,843,140
Question two: Boulder Mountain Ski Company has total assets of \$434,400,000 and a debt ratio ofÂ 0.27. Calculate the companyâ€™s debt-to-equity ratio. Answer: 0.370
Solution
Debt-to-equity ratio = total liabilities / total shareholders' equity
And Debt ratio=total liabilities/ total assets
Therefore, total liabilities=0.27*434,400,000
=117,288,000
Shareholderâ€™s equity=total assets-total liabilities
=434,400,000-117288000
=317,112,000
Debt to equity ratio= 117288000/317112000
=0.369863
Question three: The Timber Ridge Company has the following relationships:
Sales/Total assets = 3.64;Â ROA = 0.0900
Solution
ROA=Net profit margin*Assets turnover ratio
Therefore Net profit margin= ROA/Assets turnover ratio
=0.0900/3.64
=0.0247253
Question four: Sawaya Company had depreciation and amortization expensesÂ of \$522,311, interest expenses of \$114,077, and an EBITDA of \$1,521,087 forÂ the year ended June 30, 2010. What is the Times Interest Earned for thisÂ company? Your answer: 2.910
Solution
Times 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 percent. WhatÂ is Archwareâ€™s net income? (Answer needs to be stated in billions. For example: 2.83) Your Answer: 4.730
Solution
Net income= ROA*Total Assets
But ROA= Net profit margin*Assets turnover ratio
But Assets turnover ratio= Sales/total assets
=22.530/35.594
=0.6329718
Therefore, ROA= 0.21*0.6329718
=0.1329241
Net income= 0.1329241*35.594
=4.7313004 billion
Question six: Which one of the following stat...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

### Other Topics:

Need a Custom Essay Written?
First time 15% Discount!