Ebit is 4000 invested capital is 500 depreciation is 500


1. If in a new start-up company, the Balance Sheet as of June 1 states it has $1,500 in current non-cash assetsincluding $250 in inventory, as well as $500 in cash, and $1,000 in current liabilities, then what is this firm'scurrent ratio?

2. A firm has a debt-to-equity ratio of 4.0 and the firm has Total Assets of $2,000. Therefore, what is the "total debt ratio?"

3. EBIT is $4,000. Invested capital is $500. Depreciation is $500. Interest expense is $200. What is the "cash coverage ratio?"

4. If Net Income was $150,000, average Total Assets over the corresponding period was $2 million, and Taxes & Interest expense were $450,000, then what was the ROA for the period for this firm?

5. A firm has $500 in inventory, $2,800 in fixed assets, $200 in accounts receivable, and $50 in cash. What is the amount of current assets?

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Financial Management: Ebit is 4000 invested capital is 500 depreciation is 500
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