Exam 3: Financial Statements Analysis and Financial Models

Jessica's Boutique has cash of $687,accounts receivable of $1,419,accounts payable of $1,308,and inventory of $2,609.What is the value of the quick ratio?

A common-size balance sheet will express accounts receivable as a percentage of

A firm has 21,000 shares of stock outstanding,sales of $927,000,a profit margin of 4.8 percent,a price-earnings ratio of 6.2,and a book value per share of $5.80.What is the market-to-book ratio?

For a dividend paying firm,how is the projected addition to retained earnings calculated using the percentage of sales approach?

A total asset turnover measure of 0.84 means that a firm has $0.84 in

You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent. What is the cash coverage ratio?

The only difference between Joe's and Moe's is that Joe's has old,fully depreciated equipment.Moe's just purchased all new equipment that will be depreciated over 8 years.Assuming all else equal,

You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent. What is the equity multiplier?

You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent. What is the quick ratio?

The return on equity can be calculated as

On a common-size income statement,depreciation will be

A supplier,who requires payment this week,should be most concerned about which one of its customer's ratios?

Which one of these combinations will provide sufficient information to determine the sustainable growth rate of a firm?

Assume J.K.Lumber increases its operating efficiency such that costs decrease while sales remain constant.As a result,given all else constant,the

Les' Motors has sales of $482,800,cost of goods sold of $297,400,inventory of $169,600,and accounts receivable of $52,900.How many days,on average,does it take the firm to sell its inventory and collect payment on that sale?

Which ratio computes the amount of net income generated by each $1 of sales?

Martin's Lumber has a profit margin of 7 percent and a dividend payout ratio of 30 percent.The total asset turnover is 0.90,and the debt-equity ratio is 0.45.What is the sustainable rate of growth?

Rosario's has sales of $219,600,total debt of $54,800,total equity of $109,400,and a profit margin of 7.2 percent.What is the return on assets?

You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent. What is the times interest earned ratio?

Western Wear has net working capital of $5,200,net fixed assets of $128,000,sales of $114,000,and current liabilities of $9,800.From each $1 in total assets,the firm generates sales of