Exam 3: Working With Financial Statements

Good Foods has net income of $82,490, total equity of $518,700, and total assets of $1,089,500.The dividend payout ratio is .30.What is the internal growth rate?

The equity multiplier is equal to:

The Donut Hut has sales of $68,000, current assets of $11,300, net income of $5,100, net fixed assets of $54,900, total debt of $23,800, and dividends of $800.What is the sustainable growth rate?

Which one of the following is the maximum growth rate that a firm can achieve without any additional external financing?

Common-size financial statements present all balance sheet account values as a percentage of:

Lawler's BBQ has sales of $311,800, a profit margin of 3.9 percent, and dividends of $4,500.What is the plowback ratio?

A firm wishes to maintain an internal growth rate of 4.5 percent and a dividend payout ratio of 60 percent.The current profit margin is 7.5 percent and the firm uses no external financing sources.What must be the total asset turnover?

Sunshine Rentals has a debt-equity ratio of .67.The return on assets is 8.1 percent, and total equity is $595,000.What is the net income?

The Dry Dock has inventory of $431,700, accounts payable of $94,200, cash of $51,950, and accounts receivable of $103,680.What is the cash ratio?

Tower Pharmacy pays out a fixed percentage of its net income to its shareholders in the form of annual dividends.Given this, the percentage shown on a common-size income statement for the dividend account will:

Which one of the following statements is correct?

Gently Used Goods has cash of $2,950, inventory of $28,470, fixed assets of $9,860, accounts payable of $11,900, and accounts receivable of $4,660.What is the cash ratio?

Prisqua Rentals has inventory of $147,500, equity of $320,000, total assets of $658,800, and sales of $800,780.What is the common-size percentage for the inventory account?

Skylar's Bed and Breakfast has $126,500 in total assets, depreciation of 3,500, and interest of $1,850.The total asset turnover rate is 1.02.Earnings before interest and taxes are equal to 24 percent of sales.What is the cash coverage ratio?

Computer Geeks has sales of $618,900, a profit margin of 13.2 percent, a total asset turnover rate of 1.54, and an equity multiplier of 1.06.What is the return on equity?

Tony's Machinery has total equity of $815,280, long-term debt of $391,900, net working capital of $49,500, and total assets of $1,292,485.What is the total debt ratio?

The DuPont identity can be used to help a financial manager determine the: I.degree of financial leverage used by a firm. II.operating efficiency of a firm. III.utilization rate of a firm's assets. IV.rate of return on a firm's assets.

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?

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?