Exam 3: Financial Statements Analysis and Financial Models

A firm has sales of $3,900,net income of $1,304,total assets of $4,200,and total equity of $2,850.Interest expense is $80.What is the common-size statement value of the interest expense?

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

Vaun's Pet Store paid $24,300 in interest and $32,000 in dividends last year.The times interest earned ratio is 4.1,and the depreciation expense is $126,200.What is the value of the cash coverage ratio?

A common-size income statement expresses dividends as 3.6 percent.This means that dividends represent 3.6 percent of

Burnside's has accounts receivable of $42,600,inventory of $97,200,sales of $614,200,and cost of goods sold of $298,400.How long does it take the firm to sell its inventory and collect payment on the sale?

Last year,Bennett's had a PE ratio of 5.4.This year,the PE ratio is 4.9.Based on this information,it can be stated with absolute certainty that

The sustainable rate of growth can be increased by

The Golden Slipper has sales of $487,900,EBIT of $128,650,taxes of 35 percent,interest paid of $12,400,and a dividend payout ratio of 40 percent.What is the common-size ratio of the addition to retained earnings?

You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent. What is the days' sales in receivables?

Blue Mountain Foods has net fixed assets of $89,700 and current assets of $38,400,of which $21,400 is inventory.What is the common-size statement value of inventory?

The quick ratio is calculated as

Jams and Jellies has net fixed assets of $879,000,long-term debt of $368,000,current liabilities of $136,000,and net working capital of $13,400.The retention ratio is 50 percent and the profit margin is 5.8 percent.Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity.What is the external financing need if the current sales of $748,000 are projected to increase by 3 percent?

If Brewster's produces a return on assets of 14 percent and also a return on equity of 14 percent,then the firm

Which of the following represent problems encountered when comparing the financial statements of one firm with those of another firm? I.The firms may have unrelated lines of business. II.The operations of the two firms may vary geographically. III.The firms may use differing accounting methods. IV.The two firms may be regulated differently.

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

Which ratio measures the number of times a firm lends money to customers,collects that money,and relends it within a year?

Cellar Wines has a debt-equity ratio of 0.54,sales of $728,700,net income of $94,900,and total debt of $382,000.What is the return on equity?

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

The Cycle Shop has sales of $372,400 and a profit margin of 6.1 percent.There are 12,000 shares of stock outstanding with a market price per share of $8.64.What is the price-earnings ratio?

Supra's has sales of $919,800,total assets of $949,200,a profit margin of 7.3 percent,and a total debt ratio of 0.48.What is the return on equity?