1. Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.
$100,000
$250,000
$375,000
$500,000
$650,000
2. ____ A firm has revenue of $500K, and a profit margin of 10% for the current year. The balance sheet for the current year shows current assets of $100K, fixed assets of $300K, and current liabilities of $200K. The company does not have any long term debt. The company expects sales to grow by 10% next year. Using the assumptions below, what is the external financing needed for next year?
Sales growth is 10%
All expenses vary with sales
All current assets grow with sales, but current liabilities do not grow with sales
Fixed assets are at 100% utilization and thus require growth
3. The company’s dividend payout ratio is 45.455%
$10K shortfall (EFN needed)
$10K surplus (excess cash available)
$40K of surplus (excess cash available)
$40K shortfall (EFN needed)
4. _____Based on the data in the problem above, the internal growth rate for this company would be __________.
3.4%
7.4%
8.4%
9.4%
None of the above
5. Determine the equity multiplier for a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%, total equity = $50,000, and long-term debt = $100,000.
.17
.20
1.47
1.8