A firm has $600,00 in current assets and $150,000 in current liabilities. If it uses cash to pay $50,000 in accounts recievalbes will the current ratio increase or decraese? Will the net working capital increase or decrease or stay the same? Why?
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A firm has $600,00 in current assets and $150,000 in current liabilities. If it uses cash to pay $50,000 in accounts recievalbes will the current ratio increase or decraese? Will the net working capital increase or decrease or stay the same? Why?
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- What is the internal rate of return (IRR) of the following set of cash flows? (Enter your answer as a percentage rounding to 2 decimals, e.g., 12.34% as 12.34) Year O cash flow = -146,000 Year 1 cash flow = -32,000 Year 2 cash flow= 60,000 Year 3 cash flow = 70,000 Year 4 cash flow = 53,000 Year 5 cash flow = 65,000BNB bank estimates that its total revenues will amount to $350 million, and its total expenses (including taxes) will equal $220 million this year. Its liabilities total $3,800 million while its equity capital amounts to $110 million. What is the bank's return on assets? Is this ROA high or low? How could you find out?Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $ 3,240.0 $2,700.0 Operating costs excluding depreciațion and amortization 2,673.0 2,295.0 EBITDA $ 567.0 $ 405.0 Depreciation and amortization 101.0 81.0 Earnings before interest and taxes (EBIT) $ 466.0 $ 324.0 Interest 71.3 59.4 Earnings before taxes (EBT) $ 394.7 $ 264.6 Taxes (25%) 157.9 105.8 Net income $ 236.8 24 158.8 Common dividends $ 213.1 $ 127.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets Cash and equivalents 2$ 34.0 24 27.0 Accounts receivable 327.0 297.0 Inventories 597.0 459.0 Total current assets $ 958.0 %24 $ 783.0 Net plant and equipment 1,013.0 810.0 Total assets $1,971.0 $1,593.0 Liabilities and Equity Accounts payable $ 203.0 $ 162.0 Accruals 194.0 162.0 Notes payable 64.8 54.0 Total current liabilities $ 461.8 $ 378.0 Long-term bonds 648.0 540.0 Total liabilities $1,109.8 $ 918.0 Common stock 789.8…
