FNAN 300, Ch3
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
.08
Which one of these statements is true concerning the price-earnings (PE) ratio ?
A high PE ratio may indicate that a firm is expected to grow significantly.
Which one of the following is a measure of long-term solvency ?
cash coverage ratio
The ratios that are based on financial statement values and used for comparison purposes are called:
financial ratios
The cash ratio is used to evaluate the:
liquidity of a firm
Common-size financial statements present all balance sheet account values as a percentage of:
total assets
AZ Sales has total revenue of $318,400 , cost of goods sold equal to 72 percent of sales, and a profit margin of 8.1 percent. Net fix ed assets are $154,500 and current assets are $89 ,500 . What is the total asset turnover rate ?
1.30
How many dollars of sales were generated from every dollar of fix ed assets during 2017
1.78
Briar P atch Fruits has sales of $529,600 , cost of goods sold of $408,350 , depreciation of $25,400 , and interest expense of $9,100. The tax rate is 35 percent. What is the times interest earned ratio ?
10.53
L ee Sun's has sales of $4, 000 , total assets of $3,700 , and a profit margin of 7 percent. The firm has a total debt ratio of 30 percent. What is the return on equity ?
10.81 percent
A firm has sales of $1, 080 , net income of $212, net fix ed assets of $516, and current assets of $272. The firm has $87 in inventory. What is the common-size balance sheet value of inventory
11.04 percent
A firm has a return on equity of 18 percent. The total asset turnover is 2. 6 and the profit margin is 5 percent. The total equity is $7,800 . What is the net income ?
1404
Jupiter Explorers has $9 ,400 in sales. The profit margin is 4 percent. There are 5,400 shares of stock outstanding, with a price of $2. 00 per share . What is the company' s price-earnings ratio
28.72 times
Windswept, Inc., has 530 million shares of stock outstanding. Its price-earnings ratio for 2017 is 24. What is the mark et price per share of stock?
48.95
Samuelson's has a debt-equity ratio of 26 percent, sales of $8, 000 , net income of $2,400 , and total debt of $12,200 . What is the return on equity ?
5.11%
A firm has total debt of $1,480 and a debt-equity ratio of .33. What is the value of the total assets ?
5964.85
UXZ has sales of $683,200 , cost of goods sold of $512,900 , and inventory of $74,315. What is the inventory turnover rate ?
6.9 times
A firm has net income of $4,238 and interest expense of $898. The tax rate is 35 percent. What is the firm's times interest earned ratio ?
8.26
The DuP ont identity can be accurately defined as:
Equity multiplier × Return on assets.
Which one of the following is the maximum growth rate that a firm can achieve without any additional external financing
INTERNAL GROWTH RATE
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 stmt
L eon is the owner of a corner store . Which ratio should he compute if he wants to know how long the store can pay its bills given its current level of cash and accounts receivable ? Assume all receivables are collectible when due.
quick ratio