BUS 332 Exam 1: Ch3

A firm has sales of $4,300, net income of $320, total assets of $4,800, and total equity of $2,950. Interest expense is $65. What is the common-size statement value of the interest expense?

1.51 percent

A firm has total assets of $310,100 and net fixed assets of $168,500. The average daily operating costs are $2,980. What is the value of the interval measure?

47.52 days

Big Tree Lumber has earnings per share of $1.36. The firm's earnings have been increasing at an average rate of 2.9 percent annually and are expected to continue doing so. The firm has 21,500 shares of stock outstanding at a price per share of $23.40. What is the firm's PEG ratio?

5.93

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?

$1.08

A firm has total debt of $4,850 and a debt-equity ratio of .57. What is the value of the total assets?

$13,358.77

Best-Ever Chicken has a debt-equity ratio of .94. Return on assets is 8.5 percent, and total equity is $520,000. What is the net income?

$85,748

A firm has a debt-equity ratio of .57. What is the total debt ratio?

0.36

Uptown Men's Wear has accounts payable of $2,214, inventory of $7,950, cash of $1,263, fixed assets of $8,400, accounts receivable of $3,907, and long-term debt of $4,200. What is the value of the net working capital to total assets ratio?

0.51

A firm has annual sales of $416,000, a price-earnings ratio of 18, and a profit margin of 3.7 percent. There are 12,000 shares of stock outstanding. What is the price-sales ratio?

0.67

Taylor's Men's Wear has a debt-equity ratio of 56 percent, sales of $829,000, net income of $38,300, and total debt of $206,300. What is the return on equity?

10.40 percent

Oscar's Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and an equity multiplier of 1.49. What is the return on equity?

18.63 percent

Hungry Lunch has net income of $68,710, a price-earnings ratio of 13.7, and earnings per share of $.24. How many shares of stock are outstanding?

286,292

Which one of the following is a source of cash for a non-tax-paying firm?

Increase in common stock

Lenders probably have the most interest in which one of the following sets of ratios?

Long-term debt and times interest earned.

The cash coverage ratio directly measures the ability of a firm to meet which one of its following obligations?

Payment of interest to a lender.

Which one of the following will decrease if a firm can decrease its operating costs, all else constant?

Price-earnings ratio

A common-size income statement is an accounting statement that expresses all of a firm's expenses as a percentage of:

Sales

Tobin's Q relates the market value of a firm's assets to which one of the following?

Today's cost to duplicate those assets