fin621 assignment solution

[mrib]

if u upload the complete solution i will b grateful to u. or bat lakeer k fakeer ki nai me ne is se pehle kbi is trha copy nai ki.i got accdntd last week and injured severly dats y cudn't work on assignment n also missed quite a few lectures.so agar ap complete solution upload kar dain to meharbani hogi.thanx Regards

[marjan]

my dear friend yeh meri post hai aur ap ksi ki baat ka bura na mano logo ka kam hai baten bnana kun k unhe khud kuch ni ata me nay sol upload kr dia hai ap chek kr lo

[ahsan_ali]

my dear friend yeh meri post hai aur ap ksi ki baat ka bura na mano logo ka kam hai baten bnana kun k unhe khud kuch ni ata me nay sol upload kr dia hai ap chek kr lo

Hmm.... O g thanks aap meray sath ho mileys54:

[marjan]

aho aho bilkul

[viki]

(a)

Inventory Turn Over Rate = Net Sales / Average Inventory
= 40, 50, 000 / 5, 26, 500 = 7.69 or 8

Accounts Receivable Turn Over Rate = Net Sales / Average Accounts Receivable
= 40, 50, 000 / 4, 50,000 = 9 times

Comments: Yes. I will sign the contract because company sold her stock 8 times in accounting year and has turn over of Accounts receivable 9.

Part b

Return on Equity = Net Income / Stock Holder’s Equity
= 2, 38,500 / 11, 92, 500 * 100 = 20%
= 5.8 % or 6 %
Interest Coverage Ratio = Operating Income before Interest & Tax / Interest Expense
= 4, 32, 000 / 67, 500
= 6.4 Times
Comments: It is evident from the above calculations that the company earns 20 % on equity investment and has more than 6 times the operating income to pay the interest income



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[ahsan_ali]

Thank you jannab viki sahab you are really helping us