The following financial data are to be used for questions 1-5: 2000 2001 Cash & equivalents $25…

 
   

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The following financial data are to be used for questions 1-5:

2000                           2001

Cash & equivalents                           $25                             $75                

Accounts receivable                          $450                           $700              

Inventory                                           $400                           $500              

Gross Fixed assets                             $1,000                        $1,000                        

(Accumulated Depr.)                         ($200)                        ($250)            

Total Assets                                       $1,675                        $2,025                        

                                                                                               

Accounts payable                              $100                           $200

Notes payable                                    $50                             $275              

Operating accruals                             $60                             $55

Current maturities                              $50                             $50                

Long-term debt                                  $400                           $382              

Shareholders’ equity                          $1,015                        $1,063

Total Liabilities & Equity                 $1,675                        $2,025                        

                                                           2000                           2001

Revenues                                           $1,500                        $2,250

COGS                                                 $750                           $1,125

Operating expenses                            $700                           $750

Depreciation                                      $100                           $50

Interest                                                           $40                            $45

Taxes                                                 $(36)                          $112

Net Income                                        $(54)                          $168

Dividends                                           $45                             $120

1.       What is the 2000 quick ratio?

2.       What is the 2000 working capital requirement to sales ratio?

3.       What is the 2001 cash conversion efficiency?

4.       How long is the 2000 cash conversion period?

5.       What is the 2001 sustainable growth rate? use this formula g*= NPM*(1-dpo)*(1+D/E) / A/S{NPM*(1-DPO)*(1+D/E)}