FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Working With Financial Statements

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Canine Supply has sales of $2,200,total assets of $1,400,and a debt-equity ratio of 0.5.Its return on equity is 15 percent.What is the net income?

A) $128.16
B) $131.41
C) $132.09
D) $136.67
E) $140.00

F) A) and B)
G) A) and E)

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

If a firm produces a twelve percent return on assets and also a twelve percent return on equity,then the firm:

A) may have short-term, but not long-term debt.
B) is using its assets as efficiently as possible.
C) has no net working capital.
D) has a debt-equity ratio of 1.0.
E) has an equity multiplier of 1.0.

F) A) and C)
G) A) and E)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

A firm has a debt-equity ratio of 57 percent,a total asset turnover of 1.12,and a profit margin of 4.9 percent.The total equity is $511,640.What is the amount of the net income?

It is commonly recommended that the managers of a firm compare the performance of their firm to that of its peers.Increasingly,this is becoming a more difficult task.Explain some of the reasons why comparisons of this type can frequently be either difficult to perform or produce misleading results.

The Meat Market has $747,000 in sales.The profit margin is 4.1 percent and the firm has 7,500 shares of stock outstanding.The market price per share is $22.What is the price-earnings ratio?

Ratios that measure a firm's financial leverage are known as _____ ratios.

Which one of the following is a source of cash?

A firm has net working capital of $2,715,net fixed assets of $22,407,sales of $31,350,and current liabilities of $3,908.How many dollars worth of sales are generated from every $1 in total assets?

The most acceptable method of evaluating the financial statements of a firm is to compare the firm's current:

What value does the PEG ratio provide to financial analysts?

An increase in which of the following will increase the return on equity,all else constant? I.sales II.net income III.depreciation IV.total equity

A firm has total assets with a current book value of $68,700,a current market value of $74,300,and a current replacement cost of $79,200.What is the value of Tobin's Q?

On a common-size balance sheet all accounts are expressed as a percentage of:

Charlie's Chicken has a debt-equity ratio of 2.05.Return on assets is 9.2 percent,and total equity is $560,000.What is the net income?

The Du Pont identity can be used to help managers answer which of the following questions related to a firm's operations? I.How many sales dollars has the firm generated per each dollar of assets? II.How many dollars of assets has a firm acquired per each dollar in shareholders' equity? III.How much net profit is a firm generating per dollar of sales? IV.Does the firm have the ability to meet its debt obligations in a timely manner?

Taylor's Men's Wear has a debt-equity ratio of 42 percent,sales of $749,000,net income of $41,300,and total debt of $206,300.What is the return on equity?

Billings,Inc.has net income of $161,000,a profit margin of 7.6 percent,and an accounts receivable balance of $127,100.Assume that 66 percent of sales are on credit.What is the days' sales in receivables?

The Bike Shop paid $1,990 in interest and $1,850 in dividends last year.The times interest earned ratio is 2.2 and the depreciation expense is $520.What is the value of the cash coverage ratio?

An increase in which one of the following will increase a firm's quick ratio without affecting its cash ratio?

Jasper United had sales of $21,000 in 2011 and $24,000 in 2012.The firm's current accounts remained constant.Given this information,which one of the following statements must be true?