Reference no: EM132803327

(1) SME Company has a debt-equity ratio of .60. Return on assets is 8.1 percent, and total equity is $515,000.

a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

c. What is the net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

(2) Y3K, Inc., has sales of $6,349, total assets of $2,965, and a debt-equity ratio of 1.20. If its return on equity is 15 percent, what is its net income? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

(3) A company has net income of $188,000, a profit margin of 7.1 percent, and an accounts receivable balance of $127,370. Assuming 70 percent of sales are on credit, what is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)