COMM 203 Study Guide - Final Guide: Net Income, Asset Turnover, Profit Margin
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Comm203: chapter 3 - working with financial statements (4 questions) Q1) carman inc. has net working capital of ,370, current liabilities of ,720 and inventory of ,950. Answer: ca = current assets; nwc = net working capital; cl = current liabilities; nwc = ca cl. Quick ratio = (ca inventory) / cl = Q5) plumas inc. has a total debt ratio of 0. 63. Answer: total debt ratio = 0. 63 = total debt (td) / total assets (ta); substituting total debt plus total equity for total assets, we get: Td = total debt; ca = current assets; ta = total assets; cl = current liabilities; nwc = net working capital; te = total equity; d/e = debt to equity ratio. Q6) manitou corp. had additions to retained earnings for the year just ended of ,000. The firm paid out ,000 in cash dividends, and it has ending total equity of ,300,000.
