Exam 4: Financial Analysis - Sizing up Firm Performance

If the total asset turnover decreases,then the return on equity will

Hi Sky Enterprises has total assets of $3 million,a debt ratio of 30%,and an after-tax profit margin of 11.04% and sales of $2.5 million.What is Hi Sky's return on equity?

A decrease in the return on equity ratio could be caused by an increase in

Which of the following is NOT a component of return on assets (ROA)?

In the interest coverage ratio dividend payments are included in

What is the purpose of using common-size balance sheets and common-size income statements?

If a company's average collection period is higher than the industry average,then the company might be

An increase in ________ will affect shareholders' equity.

In 2014 Snout and Smith,Inc.had a gross profit of $27,000 on sales of $110,000.S & S's operating expenses for 2014 were $13,000,and its net profit margin was .0585.Snout and Smith had no interest expense in 2014.Using this information,what was S & S's operating profit margin for 2014?

Which of the following parties would perform an internal financial analysis?

Other things held constant,an increase in ________ will decrease the current ratio.Assume an initial current ratio greater than 1.0.

Which of the following is NOT a driving force of the operating profit margin?

Which of the following is the best indicator of management's effectiveness at managing the firm's balance sheet?

Another name for the acid test ratio is the

GAAP,Inc.has total assets of $2,575,000,sales of $5,950,000,total liabilities of $1,855,062,and a net profit margin of 2.9%.What is GAAP's return on equity? Round to the nearest 0.1%.

Holding all other variables constant,which of the following could cause a firm's current ratio to decrease from 3.0 to 2.5? An increase in

S.M. ,Inc.had total sales of $400,000 in 2014 (70 percent of its sales are credit).The company's gross profit margin is 10%,its ending inventory is $80,000,and its accounts receivable is $25,000.What amount of funds can be generated by the company if it increases its inventory turnover ratio to 10.0 and reduces its average collection period to 20 days?

Marshall Networks,Inc.has a total asset turnover of 2.5 and a net profit margin of 3.5%.The firm has a return on equity of 17.5%.Calculate Marshall's debt ratio.

Consolidated Industries has total interest charges of $20,000 per year.Sales of $2 million generated an operating income of $220,000 and an after-tax profit of 6% of sales.The firm has a marginal tax rate of 40%.What is the firm's interest coverage ratio?

Spinnit,Limited has a debt ratio of .57,current liabilities of $14,000,and total assets of $70,000.What is the level of Spinnit,Limited's total liabilities?