1 (Inventory/Cogs)*360

200,000.00 using 365 days

197,260.27 Using 360 days

2 CA-CL=1,120,000
2x-x=1,120,000
x=1,120,000

Current assets
2240000
Inventory
840,000.00

3 BV per share= (Common equity/number of common shares0

14

4 Asset turnover= Sales/ total assets

Sales 20000 Debt 6000

profit 600 Interest 600
EBT 1000
EBIT 1600

TIE 2.67

5 Gross margin share 4.5

Inventory 80,000.00

6 ROE= (ROA) * (1/equiy ratio)

5%=3%*(1/x)
0.03 = 5%x
Equity ratio 0.6
Debt Ratio 0.4

7 ROE= (ROA) * (1/equiy ratio)

12% * (1/(1-.36))
18.75%

8 x= SHE
1.4x+X=480,000
2.4x=480,000
SHE 200000
Total Liabilities 280000
Gross margin share 5
Inventory 100,000.00
Receivables 68000

Current Liabilities 120000

Accounts Payable 80,000.00

Reatined Earnings 60,000.00