FNAN 300 CH. 3 QUIZ

UXZ has sales of $683,200, cost of goods sold of $512,900, and inventory of $74,315. What is the inventory turnover rate?

Inventory turnover = $512,900 / $74,315 = 6.90 times

Allison's Trees has total assets of $846,200 and total debt of $367,500. What is the equity multiplier?

Equity multiplier = $846,200 / ($846,200 - 367,500) = 1.77

City Plumbing has inventory of $287,800, equity of $538,800, total assets of $998,700, and sales of $1,027,400. What is the common-size percentage for the inventory account?

Inventory common-size percentage = $287,800/$998,700 = .2882, or 28.82 percent

Oil Field Services has net income of $120,400, total assets of $1,219,000, total equity of $694,100, and total sales of $1,521,700. What is the common-size percentage for the net income?

Net income common-size percentage = $120,400 / $1,521,700 = .0791, or 7.91 percent

Adell Furniture has a profit margin of 8.2 percent on sales of $211,000. The common size ratio of dividends is .03 and total assets are $196,000. What is the plowback ratio?

Plowback ratio = [(.082 × $211,000) - (.03× $211,000)] / (.082 × $211,000) = .6341, or 63.41 percent

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?

Return on equity = .132 ×1.54 ×1.06 = .2155, or 21.55 percent

DJ's has a total asset turnover rate of 1.13, an equity multiplier of 1.46, a profit margin of 5.28 percent, a retention ratio of .74, and total assets of $138,000. What is the sustainable growth rate?

Sustainable growth rate = [(.0528 ×1.13 ×1.46) ×.74]/{1 - [(.0528 ×1.13 ×1.46) ×.74]} = .0689, or 6.89 percent

Wiley's has total equity of $679,400, long-term debt of $316,900, net working capital of $31,600, and total assets of $1,123,900. What is the total debt ratio?

Total debt ratio = ($1,123,900 - 679,400) / $1,123,900 = .40

KBJ has total assets of $613,000. There are 21,000 shares of stock outstanding with a market value of $13 a share. The firm has a profit margin of 6.2 percent and a total asset turnover of 1.08. What is the price-earnings ratio?

Price-earnings ratio = $13 /{[.062 ×($613,000 ×1.08)]/21,000} = 6.65

Deep Sea Fisheries has current liabilities of $238,620, net working capital of $42,580, inventory of $262,750, and sales of $1,941,840. What is the quick ratio?

Quick ratio = ($42,580 + 238,620 - 262,750) / $238,620 = .08