Exam 3: Working With Financial Statements

The Dockside Inn has net income for the most recent year of $8,450.The tax rate was 35 percent.The firm paid $1,300 in total interest expense and deducted $1,900 in depreciation expense.What was the cash coverage ratio for the year?

Uptown Men's Wear has accounts payable of $2,214,inventory of $7,950,cash of $1,263,fixed assets of $8,400,accounts receivable of $3,907,and long-term debt of $4,200.What is the value of the net working capital to total assets ratio?

A firm has net working capital of $2,715,net fixed assets of $22,407,sales of $31,350,and current liabilities of $3,908.How many dollars worth of sales are generated from every $1 in total assets?

A firm currently has $600 in debt for every $1,000 in equity.Assume the firm uses some of its cash to decrease its debt while maintaining its current equity and net income.Which one of the following will decrease as a result of this action?

The price-sales ratio is especially useful when analyzing firms that have which one of the following?

Beach Wear has current liabilities of $350,000,a quick ratio of 1.65,inventory turnover of 3.2,and a current ratio of 2.9.What is the cost of goods sold?

The Bike Shop paid $1,990 in interest and $1,850 in dividends last year.The times interest earned ratio is 2.2 and the depreciation expense is $520.What is the value of the cash coverage ratio?

Dixie Supply has total assets with a current book value of $368,900 and a current replacement cost of $486,200.The market value of these assets is $464,800.What is the value of Tobin's Q?

Jasper United had sales of $21,000 in 2011 and $24,000 in 2012.The firm's current accounts remained constant.Given this information,which one of the following statements must be true?

Townsend Enterprises has a PEG ratio of 5.3,net income of $49,200,a price-earnings ratio of 17.6,and a profit margin of 7.1 percent.What is the earnings growth rate?

The cash coverage ratio directly measures the ability of a firm's revenues to meet which one of its following obligations?

A firm generated net income of $862.The depreciation expense was $47 and dividends were paid in the amount of $25.Accounts payables decreased by $13,accounts receivables increased by $28,inventory decreased by $14,and net fixed assets decreased by $8.There was no interest expense.What was the net cash flow from operating activity?

A firm has sales of $3,200,net income of $390,total assets of $4,500,and total equity of $2,750.Interest expense is $50.What is the common-size statement value of the interest expense?

A firm has a debt-equity ratio of 0.42.What is the total debt ratio?

Which of the following can be used to compute the return on equity? I.Profit margin × Return on assets II.Return on assets × Equity multiplier III.Net income/Total equity IV.Return on assets × Total asset turnover

The Meat Market has $747,000 in sales.The profit margin is 4.1 percent and the firm has 7,500 shares of stock outstanding.The market price per share is $22.What is the price-earnings ratio?

Al's Sport Store has sales of $897,400,costs of goods sold of $628,300,inventory of $208,400,and accounts receivable of $74,100.How many days,on average,does it take the firm to sell its inventory assuming that all sales are on credit?

Russell's Deli has cash of $136,accounts receivable of $95,accounts payable of $210,and inventory of $409.What is the value of the quick ratio?

The Burger Hut has sales of $29 million,total assets of $43 million,and total debt of $13 million.The profit margin is 11 percent.What is the return on equity?

The U.S.government coding system that classifies a firm by the nature of its business operations is known as the: