Exam 3: Working With Financial Statements

Julie's Market Place has earnings per share of $.35, a book value of $2.10 per share, and a market-to-book ratio of 3. What is the firm's price-earnings ratio?

A very short-term creditor would likely be most interested in a firm's ________________.

Which of the following is a use of cash?

Determine the value of cash given the following information: cash ratio = 2; cash equivalents = $600 ; current liabilities = $800.

Based on the information provided above, what was the firm's tax rate in 2018?

Last year, New Flying Industries had a price-earnings ratio of 15. This year, the price earnings ratio is 18. Based on this information, it can be stated with certainty that:

Suppose you calculated the following ratio for a firm: The sum of the compensation paid to owners, directors, and managers, divided by total sales. Which class of financial ratios should this be included in and why? Who might be interested in such a ratio?

You have the following data for the Fosberg Winery of St Catherines. What is Fosberg's return on assets (ROA)? Return on equity = 15%; Earnings before taxes = $30,000; Total asset turnover = 0.80; Profit margin = 4.5%; Tax rate = 35%.