Jul 17th, 2013
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Price: \$15 USD

Question description

1. Balance
Sheet Analysis

Complete the balance sheet and sales information in the table that follows for
Hoffmeister Industries using the following financial data:

Debt
ratio: 55%

Quick ratio: 0.95

Total assets turnover: 2.8

Days sales outstanding: 31 days*

Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 26%

Inventory turnover ratio: 5.0

* Calculation is based on a 365-day year.

Balance
Sheet

 Cash \$ Accounts  payable \$ Accounts  receivable \$ Long-term  debt \$ 60,000 Inventories \$ Common stock \$ Fixed assets \$ Retained  earnings \$ 97,500 Total assets \$ 300,000 Total  liabilities and equity \$ Sales \$ Cost of goods  sold \$

2. Corporate
After-Tax Yield

The Shrieves Corporation has \$10,000 that it plans to invest in marketable
securities. It is choosing among AT&T bonds, which yield 8.5%, state of
Florida muni bonds, which yield 4% (but are not taxable), and AT&T
preferred stock, with a dividend yield of 7%. Shrieves's corporate tax rate is
35%, and 70% of the dividends received are tax exempt. Find the after-tax rates
of return on all three securities. Round your answers to two decimal places.

 A-T rate of  return on AT&T bond % A-T rate of  return on Florida muni bonds % A-T rate of  return on AT&T preferred stock %

(Top Tutor) Daniel C.
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School: Boston College

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Jul 17th, 2013
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