The following data apply to Jacobus and Associates (millions of dollars): Cash and marketable securities $ 100.00 Fixed assets $ 283.50 Sales $ 1,000.00 Net income $ 50.00 Quick ratio 2.0 Current ratio 3.0 DSO 40.55 days ROE 12% Jacobus has no preferred stock—only common equity, current liabilities, and long-term debt. Find Jacobus’s (1) accounts receivable, (2) current liabilities, (3) current assets, (4) total assets, (5) ROA, (6) common equity, and (7) long-term debt. (PLEASE show all work) Solution Accounts receivables = DSO =( Average receivables/sales)*365 = 40.55 =( AR/50000)*365 = 111.1 Quick Ratio= quick assets/ quick liabilities = 2= 100+111.2/current liabilities = current liabilities = 105.5 current ratio = 3 = current assets/105.5 = 316.5 total assets = 316.5 + 283.5 = 600 ROA =net profit ratio* asset turnover (50/1000)*(1000/600) = 8.33% ROE = 12 = 50/equity = equity = 416.66 total debt = 600-416.66-105.5 = 77.9.

1. The following data apply to Jacobus and Associates (millions of dollars):
Cash and marketable securities $ 100.00
Fixed assets $ 283.50
Sales $ 1,000.00
Net income $ 50.00
Quick ratio 2.0
Current ratio 3.0
DSO 40.55 days
ROE 12%
Jacobus has no preferred stock—only common equity, current liabilities, and long-term debt.
Find Jacobus’s (1) accounts receivable, (2) current liabilities, (3) current assets, (4) total assets,
(5) ROA, (6) common equity, and (7) long-term debt.
(PLEASE show all work)
Solution
Accounts receivables = DSO =( Average receivables/sales)*365 = 40.55 =( AR/50000)*365 =
111.1
Quick Ratio= quick assets/ quick liabilities = 2= 100+111.2/current liabilities = current liabilities
= 105.5
current ratio = 3 = current assets/105.5 = 316.5
total assets = 316.5 + 283.5 = 600
ROA =net profit ratio* asset turnover (50/1000)*(1000/600) = 8.33%
ROE = 12 = 50/equity = equity = 416.66
total debt = 600-416.66-105.5 = 77.9