Question details

FIN 534 Week 2 Homework Assignment Set 1
$ 12.00
Inventory turnover 4 4 6.1
Days sales outstanding 37.3 39.6 32
Fixed assets turnover 10 6.2 7
Total assets turnover 2.3 2 2.5
Debt ratio 35.60% 59.60% 32.00%
Liabilities-to-assets ratio 54.80% 80.70% 50.00%
TIE 3.3 0.1 6.2
EBITDA coverage 2.6 0.8 8
Profit margin 2.60% −1.6% 3.60%
Basic earning power 14.20% 0.60% 17.80%
ROA 6.00% −3.3% 9.00%
ROE 13.30% −17.1% 17.90%
Price/Earnings (P/E) 9.7 −6.3 16.2
Price/Cash flow 8 27.5 7.6
Market/Book 1.3 1.1 2.9
2.  Suppose Congress changed the tax laws so that Berndt’s depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? 
      
3.  Calculate the 2014 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity position in 2013? 
      
6.  Calculate the 2014 profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE). What can you say about these ratios? 
      
7.  Calculate the 2014 price / earnings ratio, price / cash flow ratio, and market / book ratio. 
      
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