Question 1

Lawler's BBQ has sales of $311,800,a profit margin of 3.9 percent,and dividends of $4,500.What is the plowback ratio?

Accepted Answer

A)  46.32 percent
B)  49.78 percent
C)  50.23 percent
D)  58.09 percent
E)  62.99 percentF) C) and D)
G) A) and C)

Question 2

Fresh Foods has sales of $213,600,total assets of $198,700,a debt-equity ratio of 1.43,and a profit margin of 4.8 percent.What is the equity multiplier?

Accepted Answer

A)  .30
B)  .43
C)  1.93
D)  2.43
E)  2.30F) C) and D)
G) C) and E)

Question 3

Gently Used Goods has cash of $2,950,inventory of $28,470,fixed assets of $9,860,accounts payable of $11,900,and accounts receivable of $4,660.What is the cash ratio?

Accepted Answer

A)  .08
B)  .25
C)  .30
D)  .46
E)  .51F) All of the above
G) A) and D)

Question 4

Kessler Cleaners has accounts receivable of $28,943,total assets of $387,600,cost of goods sold of $317,400,and a capital intensity ratio of .97.What is the accounts receivable turnover rate?

Accepted Answer

A)  12.63
B)  13.81
C)  12.42
D)  14.61
E)  10.97F) D) and E)
G) A) and B)

Question 5

Turner's Store had a profit margin of 6.8 percent,sales of $498,200,and total assets of $542,000.If management set a goal of increasing the total asset turnover to 1.10 times,what would the new sales figure need to be,assuming no increase in total assets?

Accepted Answer

A)  $467,185
B)  $492,727
C)  $488,500
D)  $596,200
E)  $657,480F) All of the above
G) A) and B)

Question 6

Goshen Industrial Sales has sales of $487,600,total equity of $367,700,a profit margin of 5.1 percent,and a debt-equity ratio of .34.What is the return on assets?

Accepted Answer

A)  5.89 percent
B)  5.05 percent
C)  6.76 percent
D)  8.80 percent
E)  7.33 percentF) B) and E)
G) A) and D)

Question 7

Towne Realty has total assets of $346,200,net fixed assets of $277,400,current liabilities of $16,100,and long-term liabilities of $124,600.What is the total debt ratio?

Accepted Answer

A)  .47
B)  .41
C)  .68
D)  .56
E)  .52F) D) and E)
G) A) and C)

Question 8

The Dry Dock has inventory of $431,700,accounts payable of $94,200,cash of $51,950,and accounts receivable of $103,680.What is the cash ratio?

Accepted Answer

A)  .64
B)  .55
C)  .53
D)  .98
E)  1.34F) None of the above
G) A) and E)

Question 9

A firm has adopted a policy whereby it will not seek any additional external financing.Given this,what is the maximum growth rate for the firm if it has net income of $32,600,total equity of $294,000,total assets of $503,000,and a 25 percent dividend payout ratio?

Accepted Answer

A)  5.11 percent
B)  4.88 percent
C)  6.62 percent
D)  7.67 percent
E)  8.37 percentF) B) and E)
G) D) and E)

Question 10

Computer Geeks has sales of $618,900,a profit margin of 13.2 percent,a total asset turnover rate of 1.54,and an equity multiplier of 1.06.What is the return on equity?

Accepted Answer

A)  18.91 percent
B)  12.67 percent
C)  18.28 percent
D)  22.11 percent
E)  21.55 percentF) B) and C)
G) D) and E)

Question 11

Phil's Carvings sells its inventory in 93 days,on average.Costs of goods sold for the year are $187,200.What is the average value of the firm's inventory? Assume a 365-day year.

Accepted Answer

A)  $20,129
B)  $47,698
C)  $57,132
D)  $61,096
E)  $32,513F) D) and E)
G) A) and D)

Question 12

A firm wishes to maintain an internal growth rate of 4.5 percent and a dividend payout ratio of 60 percent.The current profit margin is 7.5 percent and the firm uses no external financing sources.What must be the total asset turnover?

Accepted Answer

A)  .98
B)  1.06
C)  1.21
D)  1.44
E)  1.59F) A) and B)
G) D) and E)

Question 13

The Wood Shed has cash of $5,800,accounts receivable of $18,600,inventory of $53,100,and net working capital of $2,100.What is the cash ratio?

Accepted Answer

A)  .11
B)  .08
C)  .26
D)  .21
E)  .45F) C) and E)
G) C) and D)

Question 14

Dellf's has a profit margin of 3.8 percent on sales of $287,200.The firm currently has 5,000 shares of stock outstanding at a market price of $7.11 per share.What is the price-earnings ratio?

Accepted Answer

A)  3.26
B)  8.02
C)  11.50
D)  5.93
E)  12.84F) B) and D)
G) All of the above

Question 15

High Road Transport has a current stock price of $5.60.For the past year,the company had net income of $287,400,total equity of $992,300,sales of $1,511,000,and 750,000 shares outstanding.What is the market-to-book ratio?

Accepted Answer

A)  3.54
B)  3.81
C)  3.99
D)  4.47
E)  4.23F) D) and E)
G) C) and D)

Question 16

A firm has sales of $811,000 for the year.The profit margin is 5.1 percent and the retention ratio is 56 percent.What is the common-size percentage for the dividends paid?

Accepted Answer

A)  1.99 percent
B)  2.86 percent
C)  1.21 percent
D)  2.24 percent
E)  1.42 percentF) C) and D)
G) B) and E)

Question 17

Taylor,Inc.has sales of $11,898,total assets of $9,315,and a debt-equity ratio of .55.If its return on equity is 14 percent,what is its net income?

Accepted Answer

A)  $841.35
B)  $887.16
C)  $904.10
D)  $911.16
E)  $927.46F) C) and D)
G) None of the above

Question 18

The DuPont identity can be accurately defined as:

Accepted Answer

A)  Return on equity xTotal asset turnover xEquity multiplier.
B)  Equity multiplier xReturn on assets.
C)  Profit margin xReturn on equity.
D)  Total asset turnover xProfit margin xDebt-equity ratio.
E)  Equity multiplier xReturn on assets Profit margin.F) A) and C)
G) C) and D)

Question 19

Use the following financial information to answer this question.

\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad 2016 Income Statement   2016 	ext { Income Statement } 2016 Income Statement  
  Sales $30,710 Cost of goods sold 18,470 Depreciation 6,132 Interest 744 Taxes 1,824 Net income $3,540\begin{array} { | l | r | } \hline 	ext { Sales } & \$ 30,710 \\hline 	ext { Cost of goods sold } & 18,470 \\hline 	ext { Depreciation } & 6,132 \\hline 	ext { Interest } & 744 \\hline 	ext { Taxes } & 1,824 \\hline 	ext { Net income } & \$ 3,540 \\hline\end{array} Sales  Cost of goods sold  Depreciation  Interest  Taxes  Net income ​$30,71018,4706,1327441,824$3,540​​ 
 What are the values of the three components of the DuPont identity? Use ending balance sheet values.

Accepted Answer

A)  .1168; 1.01; .5241
B)  .1153; 1.01; .4259
C)  .1153; 1.01; 1.9080
D)  .1168; .99; .5241
E)  .1153; .99; 1.9080 F) C) and D)
G) D) and E)

Question 20

AZ Sales has total revenue of $318,400,cost of goods sold equal to 72 percent of sales,and a profit margin of 8.1 percent.Net fixed assets are $154,500 and current assets are $89,500.What is the total asset turnover rate?

Accepted Answer

A)  1.08
B)  1.38
C)  1.30
D)  1.24
E)  1.28F) B) and C)
G) A) and B)

Exam 3: Working With Financial Statements

A firm has sales of $811,000 for the year.The profit margin is 5.1 percent and the retention ratio is 56 percent.What is the common-size percentage for the dividends paid?

Correct Answer
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Goshen Industrial Sales has sales of $487,600,total equity of $367,700,a profit margin of 5.1 percent,and a debt-equity ratio of .34.What is the return on assets?

Correct Answer
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The Wood Shed has cash of $5,800,accounts receivable of $18,600,inventory of $53,100,and net working capital of $2,100.What is the cash ratio?

Correct Answer
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Computer Geeks has sales of $618,900,a profit margin of 13.2 percent,a total asset turnover rate of 1.54,and an equity multiplier of 1.06.What is the return on equity?

Correct Answer
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Dellf's has a profit margin of 3.8 percent on sales of $287,200.The firm currently has 5,000 shares of stock outstanding at a market price of $7.11 per share.What is the price-earnings ratio?

Correct Answer
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Gently Used Goods has cash of $2,950,inventory of $28,470,fixed assets of $9,860,accounts payable of $11,900,and accounts receivable of $4,660.What is the cash ratio?

Correct Answer
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Taylor,Inc.has sales of $11,898,total assets of $9,315,and a debt-equity ratio of .55.If its return on equity is 14 percent,what is its net income?

Correct Answer
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A firm has adopted a policy whereby it will not seek any additional external financing.Given this,what is the maximum growth rate for the firm if it has net income of $32,600,total equity of $294,000,total assets of $503,000,and a 25 percent dividend payout ratio?

Correct Answer
verified

AZ Sales has total revenue of $318,400,cost of goods sold equal to 72 percent of sales,and a profit margin of 8.1 percent.Net fixed assets are $154,500 and current assets are $89,500.What is the total asset turnover rate?

Correct Answer
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Fresh Foods has sales of $213,600,total assets of $198,700,a debt-equity ratio of 1.43,and a profit margin of 4.8 percent.What is the equity multiplier?

Correct Answer
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The DuPont identity can be accurately defined as:

Correct Answer
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High Road Transport has a current stock price of $5.60.For the past year,the company had net income of $287,400,total equity of $992,300,sales of $1,511,000,and 750,000 shares outstanding.What is the market-to-book ratio?

Correct Answer
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A firm wishes to maintain an internal growth rate of 4.5 percent and a dividend payout ratio of 60 percent.The current profit margin is 7.5 percent and the firm uses no external financing sources.What must be the total asset turnover?

Correct Answer
verified

Phil's Carvings sells its inventory in 93 days,on average.Costs of goods sold for the year are $187,200.What is the average value of the firm's inventory? Assume a 365-day year.

Correct Answer
verified

Kessler Cleaners has accounts receivable of $28,943,total assets of $387,600,cost of goods sold of $317,400,and a capital intensity ratio of .97.What is the accounts receivable turnover rate?

Correct Answer
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Lawler's BBQ has sales of $311,800,a profit margin of 3.9 percent,and dividends of $4,500.What is the plowback ratio?

Correct Answer
verified

The Dry Dock has inventory of $431,700,accounts payable of $94,200,cash of $51,950,and accounts receivable of $103,680.What is the cash ratio?

Correct Answer
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Correct Answer
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Towne Realty has total assets of $346,200,net fixed assets of $277,400,current liabilities of $16,100,and long-term liabilities of $124,600.What is the total debt ratio?

Correct Answer
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Turner's Store had a profit margin of 6.8 percent,sales of $498,200,and total assets of $542,000.If management set a goal of increasing the total asset turnover to 1.10 times,what would the new sales figure need to be,assuming no increase in total assets?

Correct Answer
verified

Exam 3: Working With Financial Statements

A firm has sales of $811,000 for the year.The profit margin is 5.1 percent and the retention ratio is 56 percent.What is the common-size percentage for the dividends paid?

Correct AnswerverifiedShow Answer

Goshen Industrial Sales has sales of $487,600,total equity of $367,700,a profit margin of 5.1 percent,and a debt-equity ratio of .34.What is the return on assets?

Correct AnswerverifiedShow Answer

The Wood Shed has cash of $5,800,accounts receivable of $18,600,inventory of $53,100,and net working capital of $2,100.What is the cash ratio?

Correct AnswerverifiedShow Answer

Computer Geeks has sales of $618,900,a profit margin of 13.2 percent,a total asset turnover rate of 1.54,and an equity multiplier of 1.06.What is the return on equity?

Correct AnswerverifiedShow Answer

Dellf's has a profit margin of 3.8 percent on sales of $287,200.The firm currently has 5,000 shares of stock outstanding at a market price of $7.11 per share.What is the price-earnings ratio?

Correct AnswerverifiedShow Answer

Gently Used Goods has cash of $2,950,inventory of $28,470,fixed assets of $9,860,accounts payable of $11,900,and accounts receivable of $4,660.What is the cash ratio?

Correct AnswerverifiedShow Answer

Taylor,Inc.has sales of $11,898,total assets of $9,315,and a debt-equity ratio of .55.If its return on equity is 14 percent,what is its net income?

Correct AnswerverifiedShow Answer

A firm has adopted a policy whereby it will not seek any additional external financing.Given this,what is the maximum growth rate for the firm if it has net income of $32,600,total equity of $294,000,total assets of $503,000,and a 25 percent dividend payout ratio?

Correct AnswerverifiedShow Answer

AZ Sales has total revenue of $318,400,cost of goods sold equal to 72 percent of sales,and a profit margin of 8.1 percent.Net fixed assets are $154,500 and current assets are $89,500.What is the total asset turnover rate?

Correct AnswerverifiedShow Answer

Fresh Foods has sales of $213,600,total assets of $198,700,a debt-equity ratio of 1.43,and a profit margin of 4.8 percent.What is the equity multiplier?

Correct AnswerverifiedShow Answer

The DuPont identity can be accurately defined as:

Correct AnswerverifiedShow Answer

High Road Transport has a current stock price of $5.60.For the past year,the company had net income of $287,400,total equity of $992,300,sales of $1,511,000,and 750,000 shares outstanding.What is the market-to-book ratio?

Correct AnswerverifiedShow Answer

A firm wishes to maintain an internal growth rate of 4.5 percent and a dividend payout ratio of 60 percent.The current profit margin is 7.5 percent and the firm uses no external financing sources.What must be the total asset turnover?

Correct AnswerverifiedShow Answer

Phil's Carvings sells its inventory in 93 days,on average.Costs of goods sold for the year are $187,200.What is the average value of the firm's inventory? Assume a 365-day year.

Correct AnswerverifiedShow Answer

Kessler Cleaners has accounts receivable of $28,943,total assets of $387,600,cost of goods sold of $317,400,and a capital intensity ratio of .97.What is the accounts receivable turnover rate?

Correct AnswerverifiedShow Answer

Lawler's BBQ has sales of $311,800,a profit margin of 3.9 percent,and dividends of $4,500.What is the plowback ratio?

Correct AnswerverifiedShow Answer

The Dry Dock has inventory of $431,700,accounts payable of $94,200,cash of $51,950,and accounts receivable of $103,680.What is the cash ratio?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Towne Realty has total assets of $346,200,net fixed assets of $277,400,current liabilities of $16,100,and long-term liabilities of $124,600.What is the total debt ratio?

Correct AnswerverifiedShow Answer

Turner's Store had a profit margin of 6.8 percent,sales of $498,200,and total assets of $542,000.If management set a goal of increasing the total asset turnover to 1.10 times,what would the new sales figure need to be,assuming no increase in total assets?

Correct AnswerverifiedShow Answer

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