[Ch 2] Use the following firm's balance sheet to answer the next three problems. All values in the table are in millions of dollars. Assets Liabilities & Owners' Equity Inventory $19.0 Short-term loans $20.0 Accounts receivable $5.0 Accounts payable $10.0 Cash $4.0 Long-term loans $40.0 Factory & equipment $82.0 Patents Bonds issued $40.0 $10.0 Owners' equity $10.0 13. [Ch 2] What is the level of the firm's net working capital? $ million (to nearest $0.1 million) 14. [Ch 2] What is the firm's original leverage ratio (equity multiplier)? If the market value of its patents increases by 25% (and the value of all other assets and liabilities remain unchanged), by what percent does owners' equity increase? In Canvas, enter only the % change in equity for #14 Leverage ratio (to nearest 0.0001) % change in equity (to nearest 0.0001%) %

[Ch 2] Use the following firm's balance sheet to answer the next three problems. All values in the table are in millions of dollars. Assets Liabilities & Owners' Equity Inventory $19.0 Short-term loans $20.0 Accounts receivable $5.0 Accounts payable $10.0 Cash $4.0 Long-term loans $40.0 Factory & equipment $82.0 Patents Bonds issued $40.0 $10.0 Owners' equity $10.0 13. [Ch 2] What is the level of the firm's net working capital? $ million (to nearest $0.1 million) 14. [Ch 2] What is the firm's original leverage ratio (equity multiplier)? If the market value of its patents increases by 25% (and the value of all other assets and liabilities remain unchanged), by what percent does owners' equity increase? In Canvas, enter only the % change in equity for #14 Leverage ratio (to nearest 0.0001) % change in equity (to nearest 0.0001%) %

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7DQ: From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio...

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