Exam 3: Working With Financial Statements

During the year, Doug's Bakery decreased its accounts receivable by $50, increased its inventory by $100, and decreased its accounts payable by $50. For these three accounts, the firm has a net:

A firm has an ROA of 8%, sales of $100, and total assets of $71. What is its profit margin?

Calculate gross profit given the following information: accounts receivable = $40,000; inventory = $80,000; receivable turnover = 25 times; inventory turnover = 6 times.

Calculate net working capital turnover given the following data. Total fixed assets $200,000; long-term liabilities $55,000; total liabilities $80,000; total shareholders' equity $220,000; total sales $800,000.

Given a profit margin = 10%, ROE = 20%, D/E = 1.5, and assets = $200, calculate sales.

Using the Du Pont Identity Method, calculate return on equity given the following information. Profit margin 18%; total asset turnover 0.70; equity multiplier 1.1.

If you were to prepare a statement of cash flows, what is the net cash flow from financing activities ($ in millions)?

Calculate the times interest earned ratio given the following information: depreciation expense = $30,000; EBIT = $180,000; cash coverage ratio = 14 times.

A _____________ standardizes items on the statement of comprehensive income and statement of financial position as a percentage of total sales and total assets, respectively.

On a common size statement of comprehensive income for 2018, earnings before interest and taxes would be assigned a common value of:

Jorge Corp. of North Bay has 100,000 shares outstanding. EBIT is $1 million and interest paid is $200,001. If the corporate tax rate is 34%, what is Jorge's earnings per share?

The statement of cash flows cannot be standardized.

Without making reference to its formula, provide a definition of inventory turnover.

Last year, which is used as the base year, a firm had cash of $46, accounts receivable of $132, inventory of $319, and net fixed assets of $640. This year, the firm has cash of $52, accounts receivable of $147, inventory of $312, and net fixed assets of $576. What is the common-base year value of accounts receivable?

Martin's Method Acting School has a current ratio of 2, a quick ratio of 1.8, net income of $180,000, a profit margin of 10%, and an accounts receivable balance of $150,000. What is the firm's average collection period?

Stephen's Auto Body Shop (Oshawa) has a debt-equity ratio of.6, a total asset turnover of 1.43, and a profit margin of 5 %. The firm has a return on assets of _____ % and a return on equity of _____ %.

Explain the types of activities that are shown on a statement of cash flows?

Payment of a note payable and repurchase of common stock are uses of cash.

Sales are $75,000, cost of goods sold is $35,000 and inventory is $5,000. What is the number of days' sales in inventory?

A Montreal firm has current liabilities of $250, a current ratio of 1.2, and a quick ratio of 0.81. Calculate the level of inventory for this firm.