Finance

Question 1 (Worth 2 points) introduce 4-1 (The following info apply to the problem(s) below.) The balance sheet and income statement shown below nuclear number 18 for Pettijohn Inc. Note that the firm has no amortisation charges, it does not necessitate any assets, none of its debt must be retired during the next 5 classs, and the notes collectible will be turn over. Balance piece of paper (Millions of $) Assets2007 Cash and securities$ 1,554.0 Accounts receivable9,660.0 Inventories13,440.0 Total oc bounteous stop assets$24,654.0 boodle kit and boodle and equipment17,346.0 Total assets$42,000.0 Liabilities and Equity Accounts collectable$ 7,980.0 Notes payable5,880.0 Accruals4,620.0 Total authoritative liabilities$18,480.0 Long-term bonds10,920.0 Total debt$29,400.0 Common stock3,360.0 hold clams9,240.0 Total common equity$12,600.0 Total liabilities and equity$42,000.0 Income tale (Millions of $)2007 Net gross sales$58,800.0 Oper ating costs except deprn$54,978.0 depreciation$ 1,029.0 Earnings bef int and taxes (EBIT)$ 2,793.0 Less interest1,050.0 Earnings before taxes (EBT)$ 1,743.0 Taxes$ 610.1 Net income$ 1,133.0 opposite data: Shares outstanding (millions)175.00 Common dividends$509.83 Int measure on notes payable & L-T bonds6.

25% Federal plus state income tax rate35% closing stock price$77.69 Refer to Exhibit 4-1. What is the firms days sales outstanding? Assume a 360-day year for this calculation. 48.17 50.71 53.38 56.19 59.14 This is a lay out answer Question Information: DSO = Accounts receivable/(Sales/360) = 59.14 Points earned on this question: 2 ______________ __________________________ Question 2 (Wort! h 2 points) Amram Companys current ratio is 1.9. Considered alone, which of the following actions would take the companys current ratio? seize on using short-term notes payable and drill the matter to reduce accruals. Borrow using short-term notes payable and use the proceeds to reduce long-term debt....If you want to sire a full essay, order it on our website: OrderEssay.net

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