Nama : Putri Eka Febriani
Kelas : 3U Akuntansi
NIM : 2002015061
4-12
Total Current Effect on
current ratio net
assets income
Cash is acquired through issuance of additional common + + 0
stock.
Merchandise is sold for cash + + +
Federal income tax due for the previous year is paid. - + 0
A fixed asset is sold for less than book value + + -
A fixed asset is sold for more than book value. + + +
Merchandise is sold on credit. + + +
Payment is made to trade creditors for previous purchases - + 0
A cash dividend is declared and paid - - 0
Cash is obtained through short-term bank loans + - 0
Short-term notes receivable are sold at a discount. - - -
Marketable securities are sold below cost + + -
Advances are made to employees. 0 0 0
Current operating expenses are paid - - -
Short-term promissory notes are issued to trade creditors in 0 0 0
exchange for past due accounts payable.
10-year notes are issued to pay off accounts payable. 0 + 0
A fully depreciated asset is retired. 0 0 0
Accounts receivable are collected 0 0 0
Equipment is purchased with short-term notes. 0 - 0
Merchandise is purchased on credit. + - 0
The estimated taxes payable are increased.
Problem
4-1 DAYS SALES OUTSTANDING Baxley Brothers has a DSO of 23 days, and its annual sales
are $3,650,000. What is its accounts receivable balance? Assume that it uses a 365-day year.
Answer :
DSO= Receivable: Annual Sales / 365
23 = R : 3.650.000 / 365
23 = R x 365 / 3.650.000
23 x 3.650.000 = 365 R
83.950.000 = 365 R
$ 230.000 = Receivable
4-2 DEBT TO CAPITAL RATIO Kaye’s Kitchenware has a market/book ratio equal to 1. Its stock
price is $12 per share and it has 4.8 million shares outstanding. The firm’s total capital is $110
million and it finances with only debt and common equity. What is its debt-to-capital ratio?
Answer :
Debt to capital ratio : total debt / total capital
Total Debt: ((total capital – (outstanding share x stock price))
: ($110 M – ($4,8 M x $12)
: $110 M - $ 57,6 = $ 52,4 M
Debt to capital ratio : $ 52,4 M / $110 M = 0,48 atau 48%
4-3 DuPONT ANALYSIS Henderson’s Hardware has an ROA of 11%, a 6% profit margin, and
an ROE of 23%. What is its total assets turnover? What is its equity multiplier?
Answer:
ROA: 11%
profit Margin: 6%
ROE : 23%
Total Asset turn over: sales / asset
: ROA / Profit Margin
: 11% / 6 % = 1,83 X
Equity Multiplier : Assets / Equity
: ROE / ROA
: 23% / 11% = 2,09 X
4-4 MARKET/BOOK AND EV/EBITDA RATIOS Edelman Engines has $17 billion in total assets
—of which cash and equivalents total $100 million. Its balance sheet shows $1.7 billion in
current liabilities—of which the notes payable balance totals $1 billion. The firm also has $10.2
billion in long-term debt and $5.1 billion in common equity. It has 300 million shares of common
stock outstanding, and its stock price is $20 per share. The firm’s EBITDA totals $1.368 billion.
Assume the firm’s debt is priced at par, so the market value of its debt equals its book value.
What are Edelman’s market/book and its EV/EBITDA ratios?
Answer:
Total Asset : 17 B
Cash & equivalent: 100 M
Current Liabilities : 1,2 B
Notes Payable : 1 B
Long term debt: 10,2 B
Common Equity : 5,1 B
Share of common stock outstanding : 300 M
market price per share : $20
Book value per share: book value of equity / share outstanding
: [Link] / 300.000.000 = 17
Market/book : $20/$17 = 1.17 X
EV : market value of equity + market value of debt + market value of other claims – cash &
equivalent
: ($300M x $20 )+ ($1M + $10,2 B) + 0 - $100M
: 6 B + 11,2 B – 100 M
: 17,2 B – 100 M
: 17,1 B
EV/EBITDA : 17,1 B / 1,368 B = 12,5 X
4-5 PRICE/EARNINGS RATIO A company has an EPS of $2.40, a book value per share of
$21.84, and a market/book ratio of 2.73. What is its P/E ratio?
Answer :
EPS : $2,40
book value pershare: $21,84
market/book ratio: 2,7 X
P/E Ratio: market price pershare / EPS
: $21,84 / $2,40
: 9,1 X
4-6 DuPONT AND ROE A firm has a profit margin of 3% and an equity multiplier of 1.9. Its sales
are $150 million, and it has total assets of $60 million. What is its ROE?
Answer:
Profit margin: 3%
Equity multiplier: 1,9
Sales: 150 M
Total Aset: 60M
Total aset turn over : sales / total aset
: 150M / 60M = 2,5 X
ROE : profit mergin x total aset turn over x equity multiplier
: 3% x 2,5 x 1,9
: 14,25%
