Exam 3: Working With Financial Statements

A fire has destroyed a large percentage of the financial records of the Strongwell Co.You have the task of piecing together information in order to release a financial report.You have found the return on equity to be 13.8 percent.Sales were $979,000, the total debt ratio was .42, and total debt was $548,000.What is the return on assets?

Turner's Store had a profit margin of 6.8 percent, sales of $498,200, and total assets of $542,000.If management set a goal of increasing the total asset turnover to 1.10 times, what would the new sales figure need to be, assuming no increase in total assets?

Which of the following is true regarding the Internal Growth Rate?

Mike's Place has total assets of $152,080, a debt-equity ratio of .62, and net income of $14,342 What is the return on equity?

The Saw Mill has a return on assets of 7.92 percent, a total asset turnover rate of 1.18, and a debt-equity ratio of 1.46.What is the return on equity?

Which one of the following will increase the profit margin of a firm, all else held constant?

Delmont Movers has a profit margin of 7.1 percent and net income of $63,700.What is the common-size percentage for the cost of goods sold if that expense amounted to $522,600 for the year?

Jaminda's Holistic Healing has sales of $980,000, cost of goods sold of $765,250, and accounts receivable of $88,640.How long on average does it take the firm's customers to pay for their purchases? Assume a 365-day year.

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?

KBJ has total assets of $613,000.There are 21,000 shares of stock outstanding with a market value of $13 a share.The firm has a profit margin of 6.2 percent and a total asset turnover of 1.08.What is the price-earnings ratio?

Use the following financial information to answer this question. What are the values of the three components of the DuPont identity? Use ending balance sheet values.

Jessica's Sports Wear has $38,100 in receivables and $523,700 in total assets.The total asset turnover rate is 1.17 and the profit margin is 7.3 percent.How long on average does it take to collect the receivables? Assume a 365-day year.

The Conference Center has cash of $7800, accounts receivable of $15600, inventory of $48,850, and net working capital of $ 5,000.What is the cash ratio?

Fresh Foods has sales of $213,600, total assets of $198,700, a debt-equity ratio of 1.43, and a profit margin of 4.8 percent.What is the equity multiplier?

Saki Kale Farms has net income of $96,320, total assets of $975,200, total equity of $555,280, and total sales of $1,141,275.What is the common-size percentage for the net income?

The Wood Shop generates $.97 in sales for every $1 invested in total assets.Which one of the following ratios would reflect this relationship?

Gorilla Movers has sales of $645,560, cost of goods sold of $425,890, depreciation of $32,450, and interest expense of $12,500.The tax rate is 30 percent.What is the times interest earned ratio?

Western Hardwoods has total equity of $318,456, a profit margin of 3.79 percent, an equity multiplier of 1.68, and a total asset turnover of .97.What is the amount of the firm's sales?

Which one of these transactions will increase the liquidity of a firm?

Taylor, Inc.has sales of $11,898, total assets of $9,315, and a debt-equity ratio of .55.If its return on equity is 14 percent, what is its net income?