business finance
The Purple Martin has annual sales of $687,400, total debt of $210,000, total equity of $365,000, and a profit margin of 4.80 percent. What is the return on assets?
5.74 percent
Given the following financial statements, what is the Day's Sales in Receivables for 2018?
7.79 days
Which of the following statements is true?
A Corporation is an entity separate and distinct from its owners.
What is the change in net working capital for 2018?
$-1,600
Andre's Bakery has sales of $687,000 with costs of $492,000. Interest expense is $26,000 and depreciation is $42,000. The tax rate is 20 percent. What is the net income?
$101,600
At the beginning of the year, the long-term debt of a firm was $72,918 and total debt was $138,407. At the end of the year, long-term debt was $68,219 and total debt was $145,838. The interest paid was $6,430. What is the amount of the cash flow to creditors?
$11,129
Beach Front Industries has sales of $546,000, costs of $295,000, depreciation expense of $37,000, interest expense of $15,000, and a tax rate of 32 percent. The firm paid $59,000 in cash dividends. What is the addition to retained earnings?
$76,320
If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be which one of the following?
0.5
Big Guy Subs has net income of $150,980, a price-earnings ratio of 12.8, and earnings per share of $0.87. How many shares of stock are outstanding?
173,540
Charlie's Chicken has a debt-equity ratio of 2.05. Given this, what is the firm's current capital structure?
32.79% Equity and 67.21% Debt
Personally speaking, which of the following is the best example of a capital structure decision in your life?
Choosing to borrow money to buy a car or to use your savings.
Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?
agency problem
Ratios that measure how efficiently a firm manages its assets and operations to generate revenue are referred to as _____ ratios.
asset utilization
Which of the following is not a disadvantage of sole proprietorships as a form of business?
Double Taxation
Which of the following represent INFLOWS of cash to the firm: (I) Positive OCF (II) Negative CFTC (III) Negative NCS (IV) Positive Change in NWC
I, II, and III only
Which one of the following statements related to liquidity is correct?
Liquid assets are valuable to a firm.
Consider the Income Statements for two firms (ABC and XYZ) below. Using common-sized statements, which statement below is correct?
On a size-equivalent basis, Firm XYZ retains 19.5 cents more in profit than Firm ABC
Given the following financial statements, which of the following is correct regarding the ROE for 2018?
The firm has 40.45 cents profit for every dollar of equity.
Suppose a company issues the following statement: "Our Profit Margins are strong, and our Current Ratio is above all competitors and trending upwards. However, our Total Asset Turnover is too low and declining." Given this only, which of the following is an accurate statement?
The firm should focus on improving asset utilization.
Which of the following best describes the question of "where do we get money to pay for projects?"
capital structure decision
Cash flow to creditors can directly increase with the following...
higher interest payments
The Sarbanes-Oxley Act of 2002 is a governmental response to:
management greed and abuses.
What is the most appropriate goal of the firm?
maximize shareholder wealth
Which one of the following is an example of an agency problem?
reducing the quarterly dividend so as to increase the bonus to management
Which one of the following is a capital budgeting decision?
deciding whether or not to purchase a new machine for the production line
Which of the following is mostly likely a consideration in the area of working capital management?
determining how much inventory will be needed to support a project
Which one of the following accurately describes the three parts of the Du Pont identity?
equity multiplier, profit margin, and total asset turnover
Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?
balance sheet
Which of the following statements regarding value is INCORRECT?
book value is the primary value of concern in financial decision making
If a firm's Net Working Capital increases, but current assets stay the same ... which of the following must have happened?
current liabilities have decreased
