Exam 3: Financial Statements Analysis and Long-Term Planning

A firm has a return on equity of 15%.The debt-equity ratio is 50%.The total asset turnover is 1.25 and the profit margin is 8%.The total equity is $3,200.What is the amount of the net income?

If a firm decreases its operating costs,all else constant,then:

Turner's Inc.has a price-earnings ratio of 16.Alfred's Co.has a price-earnings ratio of 19.Thus,you can state with certainty that one share of stock in Alfred's:

Projected future financial statements are called:

A firm has sales of $1,200,net income of $200,net fixed assets of $500,and current assets of $300.The firm has $200 in inventory.What is the common-size statement value of inventory?

Financial ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as _____ ratios.

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

Which one of the following sets of ratios applies most directly to shareholders?

What is the debt-equity ratio for 2011?

Fleur International had a 3% profit margin and a 35% dividend payout ratio.The total asset turnover is 1.25 and the equity multiplier is 1.30.What is the sustainable growth rate?

Which one of the following statements is correct?

Syed's Industries has accounts receivable of $700,inventory of $1,200,sales of $4,200,and cost of goods sold of $3,500.How long does it take Syed's to both sell its inventory and then collect the payment on the sale?

The financial ratio measured as the price per share of stock divided by earnings per share is known as the:

The cash ratio is measured as:

Which of the following will increase sustainable growth?

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 which will be depreciated over eight years.Assuming all else equal:

Moulton Incorporated has a 10% return on assets and a 20% dividend payout ratio.What is the internal growth rate?

An increase in which one of the following accounts increases a firm's current ratio without affecting its quick ratio?

Last year,Alfred's Automotive had a price-earnings ratio of 15.This year,the price earnings ratio is 18.Based on this information,it can be stated with certainty that:

Samuelson's has a debt-equity ratio of 40%,sales of $8,000,net income of $600,and total debt of $2,400.What is the return on equity?