The following ratios and measures are available for Hubei Corporation: Receivables…

The following ratios and measures are available for Hubei Corporation: Receivables…

The following ratios and measures are available for Hubei Corporation: Receivables turnover…………10 times Debt to total assets……………….40% Free cash flow………………..$25,000 Profit margin…………………….10% Earnings per share…………………$2 Instructions (a) Indicate whether each of the above would increase, decrease, or remainun changed by each of the following independent transactions: 1. Hubei issues common shares. 2. Hubei collects an account receivable. 3. Hubei issues a mortgage payable. 4. Hubei sells equipment at a loss. 5. Hubei s share price increases from $10 to $12. (b) Would your answers to any of the above change if the profit margin were negative and the earnings per share were a loss per share?

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