Exam 3: Working With Financial Statements

It takes K's Boutique an average of 53 days to sell its inventory and an average of 16.8 days to collect its accounts receivable.The firm has sales of $942,300 and costs of goods sold of $692,800.What is the accounts receivable turnover rate? Assume a 365-day year.

Financial statement analysis:

Gracie Human Resource Consulting has total revenue of $285,400, cost of goods sold equal to 68 percent of sales, and a profit margin of 9.2 percent.Net fixed assets are $126,400 and current assets are $65,880.What is the total asset turnover rate?

Donegal's Industrial Products wishes to maintain a growth rate of 6 percent a year, a debt-equity ratio of .45, and a dividend payout ratio of 30 percent.The ratio of total assets to sales is constant at 1.25.What profit margin must the firm achieve?

DJ's has a total asset turnover rate of 1.13, an equity multiplier of 1.46, a profit margin of 5.28 percent, a retention ratio of .74, and total assets of $138,000.What is the sustainable growth rate?

Galaxy Sales has sales of $938,300, cost of goods sold of $764,500, and inventory of $123,600.How long on average does it take the firm to sell its inventory?

If sales are $211,000, the profit margin is 6.3 percent, and the capital intensity ratio is .94, what is the return on assets?

A common-size balance sheet helps financial managers determine:

Bed Bug Inn has annual sales of $137,000.Earnings before interest and taxes are equal to 5.8 percent of sales.For the period, the firm paid $4,700 in interest.What is the profit margin if the tax rate is 34 percent?

Maren's House of Pancakes has sales of $635,400, total equity of $268,000, and a debt-equity ratio of ..6.What is the capital intensity ratio?

A firm has net income of $28,740, depreciation of 6,170, taxes of $13,420, and interest paid of $2,605.What is the cash coverage ratio?

Assume earnings before interest and taxes of $56,850 and net income of $23,954.The tax rate is 30 percent.What is the times interest earned ratio?

Pizza Pie maintains a constant debt-equity ratio of .55.The firm had net income of $14,800 for the year and paid $12,000 in dividends.The firm has total assets of $248,000.What is the sustainable growth rate?

You would like to borrow money three years from now to build a new building.In preparation for applying for that loan, you are in the process of developing target ratios for your firm.Which set of ratios represents the best target mix considering that you want to obtain outside financing in the relatively near future?

Discount Outlet has net income of $389,100, a profit margin of 2.8 percent, and a return on assets of 8.6 percent.What is the capital intensity ratio?

A firm has a return on equity of 17.8 percent, a return on assets of 11.3 percent, and a 65 percent dividend payout ratio.What is the sustainable growth rate?

A firm can increase its sustainable rate of growth by decreasing its:

Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0.

Phil's Carvings sells its inventory in 93 days, on average.Costs of goods sold for the year are $187,200.What is the average value of the firm's inventory? Assume a 365-day year.

If a firm has an inventory turnover of 15, the firm: