[abayneh habtie]

1.Assume you are given the following relationships for the Clayton Corporation:

Sales/total assets 1.5
Return on Asset (ROA) 3%
Return on Equity (ROE) 5%

Calculate Clayton's profit margin and debt ratio.

2. The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.0? What will be the firm's quick ratio Nelson has raised the maximum amount of short-term funds?
3. The Manor Corporation has $ 500,000 of debt outstanding , and it pays an interest rat of 10% annually; Manor's annual sales are $2 million, its average tax rate is 30%, and its net profit margin on sales is 5%. If the company does not maintain a TIE ratio of at least 5 to 1, then its bank will refuse to renew the loan and bankruptcy will result, What is Manor's TIE ratio?
4. The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of 6 times , total current asset of $810,000 and cash and marketable securities of $120,000. What were Kretovich's annual sales and its DSO? Assume a 365 day year.

Would you please send me the answers with workouts? Thanks

[paraclete]

You need to do your own assignments we will comment on your answers and help you understand the concepts