Problem 1: A firm in inventory, $1,8600 in fixed assets in accounts receivable, $210 in accounts payable, and $70 in cash. What is the amount of the current assets?
- $710
- $780
- $990
- $2,430
- $2,640
Problem 2: A firm has a return on equity of 20 percent. The total assets turnover is 1.9 and the profit margin is 8 percent. The total equity is $5,400. What is the amount of the net income?
Problem 3: Jupiter Explorers has $9,200 in sales. The profit margin is 3 percent. There are 4,400 shares of stock outstanding. The market price per share is $1.50. what is the price earnings ratio?
- 7.65
- 23.91
- 11.96
- 33.45
- 9.41
Problem 4: A firm has total debt of $1,390 and a debt equity ratio of 0.24. What is the value of the total assets?
- $1,723.60
- $7,181.67
- $5,791.67
- $3,336.00
- $2,400.00
Problem 5:
|
|
2011
|
|
Cost of goods sold
|
$4,878
|
|
Interest
|
238
|
|
Dividends
|
420
|
|
Depreciation
|
789
|
|
Change in retained earnings
|
631
|
|
Tax rate
|
34%
|
What is the taxable income for 2011?
Problem 6: Taylor's Men's Wear ha a debt equity ratio of 42 percent, sales of $749,000, net income of $41,300, and total debt of $206,300. What is the return on equity?
- 7.79%
- 8.41%
- 8.714%
- 9.09%
- 9.16%
Problem 7: Seaweed Mfg., Inc. is currently operating at only 84 percent of fixed asset capcity. Current sales are $550,000. What is the maximum rate at which sales can grow before any new fixed assets are needed?
- 17.23%
- 17.47%
- 18.03%
- 18.87%
- 19.05%