Exam 3: Financial Statements Analysis and Financial Models

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?

A firm has sales of $142,600,net income of $22,800,net fixed assets of $94,300,and current assets of $42,600,of which $31,400 is inventory.What is the common-size statement value of inventory?

The higher a firm's inventory turnover,the:

Which one of these is calculated as earnings before interest and taxes plus depreciation and amortization,divided by interest expense?

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

You have been advised that the sustainable growth rate for your firm is 2.86 percent.How should you interpret this information? Assume your firm is financially sound.

Which one of these is the formula for computing enterprise value?

Marcel's has a debt-equity ratio of 60 percent,a capital intensity ratio of .98,and a profit margin of 4.2 percent.What is the return on equity?

Parker's Meats has total assets of $411,900,a price-earnings ratio of 8.4,a debt-equity ratio of .65,and earnings per share of $1.22.What is the market to book ratio if there are 45,000 shares of stock outstanding?

Vaun's Pet Store paid $16,950 in interest and $21,300 in dividends last year.The times interest earned ratio is 3.8 and the depreciation expense is $84,200.What is the value of 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 which will be depreciated over eight years.Assuming all else equal:

Which ratio calculates the amount of sales generated by each $1 invested in assets?

Suppose a firm calculates its external funding need and finds that it is negative.What are the firm's options in this case?

Cellar Wines has a debt-equity ratio of 42 percent,sales of $849,000,net income of $76,800,and total debt of $349,000.What is the return on equity?

Assume JustDoIt Co.increases its operating efficiency such that costs decrease while sales remain constant.As a result,given all else constant,the:

Rosario's has sales of $114,500,total debt of $46,300,total equity of $68,400,and a profit margin of 5 percent.What is the return on assets?

A firm has a debt-equity ratio of .40.What is the total debt ratio?

From a cash flow position,which one of the following ratios best measures a firm's ability to pay the interest on its debts?

Which cash coverage ratio would a lender prefer its borrower have?

Burnside's has accounts receivable of $33,700,inventory of $54,200,sales of $364,200,and cost of goods sold of $193,400.How long does it take the firm to sell its inventory and collect payment on the sale?