Posted: November 22nd, 2021
Solution: Stock Price 18.37 Inventory Balance 300000 Expenses (excluding COGS)
Solution: Stock Price 18.37 Inventory Balance 300000 Expenses (excluding COGS) 1120000 Shares outstanding 290000 Average issue price of shares 5 Gross margin Gross Margin = Gross Profit / Sales 40% Gross Profit $ 2,400,000.00 Sales (WN-1) $ 6,000,000.00 Interest Rate 8% TIE Ratio TIE Ratio = EBIT/Interest Expense 8 EBIT (WN-2) $ 1,280,000.00 Interest Expense $ 160,000.00 Inventory Turnover Inventory Turnover = COGS / Inventory 12X COGS $ 3,600,000.00 Inventory (Given) $ 300,000.00 Current Ratio Current Ratio = Current Assets / Current Liabilities 1.5 Current Assets $ 600,000
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