Exam 3: Financial Statements Analysis and Financial Models

Katelyn's Kites has net income of $240 and total equity of $2,000. The debt-equity ratio is 1.0 and the plowback ratio is 40%. What is the internal growth rate?

The receivables turnover ratio is measured as:

Lee Sun's has sales of $3,000,total assets of $3,000,and a profit margin of 5%. The firm has a total debt ratio of 60%. What is the return on equity?

The market-to-book ratio is measured as:

List and interpret two liquidity ratios.

The percentage of sales method:

A supplier,who requires payment within ten days,is most concerned with which one of the following ratios when granting credit?

What is the return on equity for 2011?

The current ratio is measured as:

The main objective of long-term financial planning models is to:

A firm has sales of $4,000,costs of $3,000,interest paid of $100,and depreciation of $400. The tax rate is 34%. What is the value of the cash coverage ratio?

Ratios that measure how efficiently a firm uses its assets to generate sales are known as _______ ratios.

Which one of the following statements is correct if a firm has a receivables turnover measure of 10?

The three parts of the Du Pont identity can be generally described as: I. operating efficiency,asset use efficiency and firm profitability. II) financial leverage,operating efficiency and asset use efficiency. III) the equity multiplier,the profit margin and the total asset turnover. IV) the debt-equity ratio,the capital intensity ratio and the profit margin.

Which one of the following statements is correct concerning ratio analysis?

Rosita's Restaurant has sales of $5,000,total debt of $1,300,total equity of $2,400,and a profit margin of 6%. What is the return on assets?

One key reason a long-term financial plan is developed is because:

Which of the following will increase sustainable growth?

A firm has a market capitalization of $2 million,market value of interest bearing debt of $1 million,book value of interest bearing debt of $500,000 and cash of $100,000. What is the enterprise value?

Financial planning,when properly executed: