subject
Business, 01.07.2020 22:01 lilly198o

Jordan Inc has the following balance sheet and income statement data: Cash $14,000 Accounts payable $42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 280,000 Total CL $70,000 Total CA $364,000 Long-term debt 140,000 Net fixed assets 126,000 Common equity 280,000 Total assets $490,000 Total liab. and equity $490,000 Sales $280,000 Net income 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.25, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 16:30
Why are there so many types of diversion programs for juveniles
Answers: 2
question
Business, 22.06.2019 19:30
About 20 years ago, sturdy light, inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. sturdy light became a leader in this market. eventually, the backpack market reached the maturity stage and slowed down. however, by this time, sturdy light had developed a strong brand name and continued to steadily lead the market. which of the following describes this scenario? a. sturdy light was a star that developed into a cash cow. b. sturdy light was a question mark that developed into a star. c. sturdy light was a dog that developed into a question mark. d. sturdy light was a cash cow that developed into a star.
Answers: 2
question
Business, 23.06.2019 02:00
Which type of unemployment would increase if workers lost their jobs because their positions were replaced by an automated process? a) cyclical b) frictional c) international d) structural
Answers: 1
question
Business, 23.06.2019 13:20
John and sue smith are a married couple who file a joint income tax return. they have two children, so they claim a total of 4 exemptions (based on calendar year 2015 tax law, a personal exemption of $4,000 per person or dependent can be deducted from total income). in addition, they have legitimate itemized deductions totaling $25,750. their total income from wages is $237,500. what is the coupleโ€™s taxable income? $195,750 $221,500 $229,500 $205,750
Answers: 3
You know the right answer?
Jordan Inc has the following balance sheet and income statement data: Cash $14,000 Accounts payable...
Questions
question
Mathematics, 19.12.2020 01:30
question
Mathematics, 19.12.2020 01:30
question
Mathematics, 19.12.2020 01:30
question
Mathematics, 19.12.2020 01:30
Questions on the website: 13722361