Ch 3 P1 Quiz

Denver, Incorporated, has sales of $19.4 million, total assets of $14.4 million, and total debt of $5.2 million. The profit margin is 12 percent. What is the company's net income?

$2,328,000

Denver, Incorporated, has sales of $19.4 million, total assets of $14.4 million, and total debt of $5.2 million. The profit margin is 12 percent. What is the company's ROA?

16.17%

Assume earnings before interest and taxes of $56,850 and net income of $23,954. The tax rate is 21 percent. What is the times interest earned ratio?

2.14

A firm has inventory of $46,500, accounts payable of $17,400, cash of $1,250, net fixed assets of $318,650, long-term debt of $109,500, and accounts receivable of $16,600. What is the common-size percentage of the equity?

66.87%

Prime Electronic Sales has sales of $723,450, total equity of $490,000, a profit margin of 9.3 percent, and a debt-equity ratio of .42. What is the return on assets?

9.67%

Denver, Incorporated, has sales of $19.4 million, total assets of $14.4 million, and total debt of $5.2 million. The profit margin is 12 percent. What is the company's ROE?

25.30%

The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .55 and a current ratio of 1.44. Current liabilities are $2,480, sales are $10,720, profit margin is 12 percent, and ROE is 17 percent. What is the amount of the firm's net fixed assets?

$5,964.48

Southwestern Agricultural Cooperative has current liabilities of $162,500, net working capital of $28,560, inventory of $175,800, and sales of $1,941,840. What is the quick ratio?

.09

Khalid Warehouse has total assets of $485,390, net fixed assets of $250,000, current liabilities of $23,456, and long-term liabilities of $148,000. What is the total debt ratio?

.35

SDJ, Incorporated, has net working capital of $1,760, current liabilities of $5,670, and inventory of $1,280.

1.08

SDJ, Incorporated, has net working capital of $1,760, current liabilities of $5,670, and inventory of $1,280. What is the current ratio?

1.31

Stowell Horse Farms has total assets of $689,400, long-term debt of $198,375, total equity of $364.182, net fixed assets of $512,100, and sales of $1,021,500. The profit margin is 6.2 percent. What is the current ratio?

1.40

Morimoto, Incorporated, has a profit margin of 6.85 percent on sales of $24,000,000. Assume the firm has debt of $9,400,000 and total assets of $16,000,000. What is the firm's ROA?

10.28%

Nakamura, Incorporated, has a total debt ratio of .56, total debt of $316,000, and net income of $38,500. What is the company's return on equity?

15.51%

Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0.

Cash payment of an account payable

Builder's Outlet just hired a new chief financial officer. To get a feel for the company, she wants to compare the firm's sales and costs over the past three years to determine if any trends are present and also determine where the firm might need to make changes. Which one of the following statements will best suit her purposes?

Common-size income statement