FIN 305 Exam

A firm has a return on equity of 20 percent. The total asset turnover is 1.9 and the profit margin is 8 percent. The total equity is $5,400. What is the net income?

$1,080

A firm has $752 inventory, $1,440 in fixed assets, $512 in accounts receivable, $284 in net working capital, and $159 in cash. What is the amount of current liabilities?

$1,139

Teddy's Pillows had beginning net fixed assets of $475 and ending net fixed assets of $558. Assets valued at $323 were sold during the year. Depreciation was $50. What is the amount of net capital spending?

$133

For the past year, Kayla, Inc., has sales of $45,797, interest expense of $3,620, cost of goods sold of $16,134, selling and administrative expense of $11,481, and depreciation of $5,980. If the tax rate is 35 percent, what is the operating cash flow?

$15,178

A company has net working capital of $1,888. If all it's current assets were liquidated, the company would receive $5,819. What are the company's current liabilities?

$3,931

Ivan's Inc, paid $490 in dividends and $590 in interest this past year. Common stock increased by $200 and retained earnings decreased by $126. What is the net income for the year?

$364

A firm has total debt of $1,420 and a debt equity ratio of .27. What is the value of the total assets?

$6,679.26

A company has $1,371 inventory, $4,818 in net fixed assets, $658 in accounts receivable, $294 in cash, $618 in accounts payable, $1,030 in long term debt, and $5,413 in equity. What are the company's total assets?

$7,141

At the beginning of the year, long term debt of a firm is $306 and total debt is $338. At the end of the year, long term debt is $268 and total debt is $348. The interest paid is $34. What is the amount of the cash flow to creditors?

$72

Peggy Grey's Cookies has net income of $390. The firm pays out 40 percent of the net income to its shareholders as dividends. During the year, the company sold $84 worth of common stock. What is the cash flow to stockholders?

$72

What is the equity multiplier for 2017?

1.71 times

A firm has sales of $1,060, net income of $210, net fixed assets of $512, and current assets of $268. The firm has $85 in inventory. What is the common-size balance sheet value of inventory?

10.90%

Lee Sun's has sales of $4,250, total assets of $3,950, and a profit margin of 6 percent. The firm has a total debt ratio of 42 percent. What is the return on equity?

11.13 %

Jupiter Explorers has $10,400 in sales. The profit margin is 4 percent. There are 4,600 shares of stock outstanding, with a price of $1.80 per share. What is the company's price-earnings ratio?

19.90 times

What is the primary goal of financial management for a sole proprietorship?

Maximize the market value of the equity

The primary goal of financial management is to maximize

The market value of existing stock

An employee has a claim on the cash flows of martins machines. This claim is defined as a claim by one of the firms:

stakeholders

The goal of financial management is to increase the:

current market value per share.