Business Finance Homework Help

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.

Round your answers to the nearest whole dollar.

 

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	%