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| Teaching Since: | May 2017 |
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MBA (IT), PHD
Kaplan University
Apr-2009 - Mar-2014
Professor
University of Santo Tomas
Aug-2006 - Present
Use the following to answer questions 1-10: Â Â Â Â Â Â Â Â Â Â Â SHOW YOUR WORK!!!!!
MEGAFRAME COMPUTER COMPANY
Balance Sheet
As of December 31, 2003
ASSETS
Cash
$Â 40,000
Accounts Receivable
60,000
Inventory
90,000
New Plant and Equipment
 220,000
Total Assets
$410,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable
$Â 60,000
Accrued Expenses
40,000
Long-Term debt
130,000
Common Stock
60,000
Paid-In capita
20,000
Retained earnings
 100,000
  Total Liabilities and Stockholders' Equity
$410,000
MEGAFRAME COMPUTER COMPANY
Income Statement
For the Year Ended December 31, 2003
Sales (all on credit)
$720,000
Cost of Goods SoldÂ
 500,000
Gross Profit
220,000
Sales and Administrative Expense
20,000
Depreciation
  40,000
Operating Profit
160,000
Interest Expense
  16,000
Profit before Taxes
144,000
Taxes (30%)
  43,200
Net Income
$100,800
      ******SHOW YOUR WORK*******
1. Using the DuPont method, return on assets (investment) for Megaframe Computer is approximatelyÂ
2. The firm's average collection period isÂ
BUS201
Take home exam 1 Â Â Â Â *****SHOW YOUR WORK*****
3. Times interest earned for Megaframe Computer isÂ
4. Megaframe's quick ratio isÂ
5. Megaframe's current ratio isÂ
6. The firm's debt to asset ratio isÂ
7. What is Megaframe Computer's total asset turnover?Â
8. Compute Megaframe's after tax profit margin.Â
9. The firm's return on equity isÂ
10. The firm's receivable turnover isÂ
Â
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