Questions from Financial Management

Q: Estimate the age of inventory for each year. /

Estimate the age of inventory for each year.

Q: BE Enterprises has fixed costs of $50 million. Its gross

BE Enterprises has fixed costs of $50 million. Its gross margin percentage is 18 percent. What sales level must it achieve in order to break even?

Q: Fixem Co. has revenue of $125 million, property and

Fixem Co. has revenue of $125 million, property and equipment of $42 million, and accumulated depreciation and amortization of $6 million. Estimate the fixed asset turnover ratio.

Q: What is the payback period of a project with average annual cash

What is the payback period of a project with average annual cash outflows of $8,000, average annual cash inflows of $10,000, and an initial investment of $13,000?

Q: Estimate the working capital gap for each year. /

Estimate the working capital gap for each year.

Q: Quick-E Inc.’s current assets consist of cash of

Quick-E Inc.’s current assets consist of cash of $5 million, account receivables of $27 million, inventory of $37 million, and it has current liabilities of $48 million. Calculate Quick-E’s current ra...

Q: Deb Co. has interest-bearing debt of $122 million

Deb Co. has interest-bearing debt of $122 million, non–interest-bearing debt of $33 million, and equity of $76 million. Calculate Deb Co.’s debt-to-assets, debt-to-equity, and long-term-debt-to-capita...

Q: IOU Inc. has EBIT of $58,000, depreciation

IOU Inc. has EBIT of $58,000, depreciation and amortization of $12,000, interest expenses of $21,000, principal repayments of $17,000, and a tax rate of 35 percent. Calculate IOU Inc.’s interest cover...

Q: What are the three methods by which a firm can improve its

What are the three methods by which a firm can improve its working capital gap?

Q: Wholesale Lumber, Ltd. is a firm that distributes lumber to

Wholesale Lumber, Ltd. is a firm that distributes lumber to building supply and home improvement retail stores. The firm’s cost of sales for the most recent year was $45 million, its beginning invento...