fin exam ch3 hw

K Motors has sales of $96,400, costs of $53,800, interest paid of $2,800, and depreciation of $7,100. The tax rate is 21 percent. What is the value of the cash coverage ratio? Select one: a. 15.21 b. 12.14 c. 17.27 d. 23.41 e. 12.68

15.21

The Harrisburg Store 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? Select one: a. $1.08 b. $1.14 c. $1.19 d. $84 e. $93

a $1.08

Oil Creek Auto has sales of $3,340, net income of $274, net fixed assets of $2,600, and current assets of $920. The firm has $430 in inventory. What is the common-size statement value of inventory? Select one: a. 12.22 percent b. 44.16 percent c. 16.54 percent d. 13.36 percent e. 46.74 percent

a 12.22%

Bernice's has $823,000 in sales. The profit margin is 4.2 percent and the firm has 7,500 shares of stock outstanding. The market price per share is $16.50. What is the price-earnings ratio? Select one: a. 3.58 b. 3.98 c. 4.32 d. 3.51 e. 4.27

a. 3.58

TJ's has annual sales of $813,200, total debt of $171,000, total equity of $396,000, and a profit margin of 5.78 percent. What is the return on assets? Select one: a. 8.29 percent b. 6.48 percent c. 9.94 percent d. 7.78 percent e. 8.02 percent

a. 8.29%

Which one of the following accurately describes the three parts of the DuPont identity? Select one: a. Equity multiplier, profit margin, and total asset turnover b. Debt-equity ratio, capital intensity ratio, and profit margin c. Operating efficiency, equity multiplier, and profitability ratio d. Return on assets, profit margin, and equity multiplier e.Financial leverage, operating efficiency, and profitability ratio

a. equity multiplier, profit margin, and total asset turnover

Which one of the following is a source of cash? Select one: a. Repurchase of common stock b. Acquisition of debt c. Purchase of inventory d. Payment to a supplier e. Granting credit to a customer

b. acquisition of debt

RJ's has a fixed asset turnover rate of 1.26 and a total asset turnover rate of .97. Sam's has a fixed asset turnover rate of 1.31 and a total asset turnover rate of .94. Both companies have similar operations. Based on this information, RJ's must be doing which one of the following? Select one: a. Utilizing its fixed assets more efficiently than Sam's b. Utilizing its total assets more efficiently than Sam's c. Generating $1 in sales for every $1.26 in net fixed assets d. Generating $1.26 in net income for every $1 in net fixed assets e. Maintaining the same level of current assets as Sam's

b. utilizing its fixed assets more efficiently than sam's

BL Industries has ending inventory of $302,800, annual sales of $2.33 million, and annual cost of goods sold of $1.41 million. On average, how long did a unit of inventory sit on the shelf before it was sold? Select one: a. 47.43 days b. 22.18 days c. 78.38 days d. 61.78 days e. 83.13 days

c. 78.38 days

Lani's generated net income of $911, depreciation expense was $47, and dividends paid were $25. Accounts payables increased by $15, accounts receivables increased by $28, inventory decreased by $14, and net fixed assets decreased by $8. There was no interest expense. What was the net cash flow from operating activity? Select one: a. $776 b. $865 c. $959 d. $922 e. $985

c. 959

The DuPont identity can be used to help managers answer which of the following questions related to a company's operations? I. How many sales dollars are being generated per each dollar of assets? II. How many dollars of assets have been acquired per each dollar in shareholders' equity? III. How much net profit is being generating per dollar of sales? IV. Does the company have the ability to meet its ST debt obligations in a timely manner? Select one: a. I and III only b. II and IV only c. I, II, and III only d. II, III and IV only e. I, II, III, and IV

c. I, II and III only

Green Yard Care has net income of $62,300, a tax rate of 21 percent, and a profit margin of 6.7 percent. Total assets are $1,100,500 and current assets are $328,200. How many dollars of sales are being generated from every dollar of net fixed assets? Select one: a. $2.83 b. $1.37 c. $.84 d. $1.20 e. $1.23

d. $1.20

Duke's Garage has cash of $68, accounts receivable of $142, accounts payable of $235, and inventory of $318. What is the value of the quick ratio? Select one: a. 2.25 b. .53 c. .71 d. .89 e. 1.35

d. .89

Coulter Supply has a total debt ratio of .46. What is the equity multiplier? Select one: a. .89 b. 1.17 c. 1.47 d. 1.85 e. 2.17

d. 1.85

Which one of the following ratios is a measure of a firm's liquidity? Select one: a. Cash coverage ratio b. Profit margin c. Debt-equity ratio d. Quick ratio e. NWC turnover

d. quick ratio

Canine Supply has sales of $2,800, total assets of $1,900, and a debt-equity ratio of .5. Its return on equity is 15 percent. What is the net income? Select one: a. $210 b. $130 c. $240 d. $350 e. $190

e. $190

Frank's Used Cars has sales of $807,200, total assets of $768,100, and a profit margin of 6.68 percent. The firm has a total debt ratio of 54 percent. What is the return on equity? Select one: a. 13.09 percent b. 12.04 percent c. 11.03 percent d. 8.56 percent e. 15.26 percent

e. 15.26%

Hungry Lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock are outstanding? Select one: a. 13,520 b. 12,460 c. 165,745 d. 171,308 e. 170,702

e. 170,702

Which one of the following statements is correct? Select one: a. If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0. b. Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. c. The debt-equity ratio can be computed as 1 plus the equity multiplier. d. An equity multiplier of 1.2 means a firm has $1.20 in sales for every $1 in equity. e. An increase in the depreciation expense will not affect the cash coverage ratio.

e. an increase in the depreciation expense will not affect the cash coverage ratio

The accounts payable of a company changed from $136,100 to $104,300 over the course of a year. This change represents a: Select one: a. use of $31,800 of cash as investment activity. b. source of $31,800 of cash as an operating activity. c.source of $31,800 of cash as a financing activity. d.source of $31,800 of cash as an investment activity. e.use of $31,800 of cash as an operating activity.

e. use of 31800 of cash as an operating activity