Accounting for Managers - Financial Ratios, Break-Even Point, Overhead Costs

Running head: ACCOUNTING FOR MANAGERS
Accounting for Managers
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ACCOUNTING FOR MANAGERS1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Bibliography....................................................................................................................................6

ACCOUNTING FOR MANAGERS2
Question 1
a) Financial Ratio
1. Return on Equity.
2. Equity Multiplier (Total Assets/Total Equity Ratio).
3. Accounts Receivable Turnover Ratio
4. Interest Coverage Ratio
5. Days Sales of Inventory (365/Inventory Turnover Ratio)
b) Ratio’s
 Net Income 94500
 Beginning Shareholder's Equity 434070
 Return on Equity 21.77%
 Total Assets 809550
 Total Equity 315000
 Equity Multiplier (Total Assets/Total Equity Ratio). 2.57
 Sales 850500
 Returns 26350
 Accounts Receivable at Beginning of Year 315000
 Accounts Receivable at End of Year 280350