Use the following information for this and the next three


1.Jump to next question.

Use the following information for this and the next three questions. SMJ Inc. had the following information on last year's balance sheet

Sales
$ 178,000
Costs
82,500
Other expenses
7,500
Depreciation expense
14,700
Interest expense
8,400
Taxes
21,400
Dividends
12,460

2002 New equity
$ 5,400
Net new long-term debt
(2,400)
Increase in net fixed assets

17,800

What was the operating cash flow for SMJ?

Student Response
a.
10,800
b.
17,860
c.
66,600
d.
7,060

2. Jump to next question.

What was the cash flow to creditors for SMJ?

Student Response
a.
10,800
b.
17,860
c.
66,600
d.
7,060

3. Jump to next question.

What was the cash flow to stockholders of SMJ?

Student Response
a. 10,800
b. 17,860
c. 66,600
d. 7,060

4. Jump to next question.

What was the change in net working capital for SMJ?

Student Response
a. 10,800
b. 16,240
c. 6,600
d. 7,060

5. Jump to next question.

Use the following information for this and the next four questions.

You are given the following for TG Inc. for the last year:

Sales
$ 26,500
Cost of goods sold
18,850
Depreciation expense
2,900
Interest expense
400
Dividends paid
16,000
New debt issued
500

Beginning Net fixed assets
$ 12,400
Beginning Current assets
2,600
Beginning Current liabilities
2,250

Ending Net fixed assets
$ 15,250
Ending Current assets
3,890
Ending Current liabilities
2,650
Tax rate

40%

What was its last year's net income?

Student Response
a. (100)
b. (730)
c. 2,610
d. 5,910

6. Jump to next question.

What was the TG Inc.'s operating cash flow last year?

Student Response

a. (100)
b. (730)
c. 2,610

d. 5,910

7. Jump to next question.

What was the TG Inc.'s cash flow from assets last year?

Student Response

a. (100)
b. (730)
c. 2,610
d. 5,910

8. Jump to next question.

What was the TG Inc.'s cash flow to creditors last year?

Student Response

a. (100)
b.(730)
c. 2,610
d. 5,910

9. Jump to next question.

What was the TG Inc.'s cash flow to stockholders?

Student Response

a. (100)
b. (630)
c. 2,610
d. 5,910

10. Jump to next question.

Use the following information for this and the next seventeen questions.

You are given the following for the Hanna Inc.

What is the current ratio at the end of the year?

Student Response
a. 0.59
b. 0.64
c. 1.49
d. 3.19

11. Jump to next question.

What is the Hanna Inc.'s quick ratio at the end of the year?

Student Response
a. 0.59
b. 0.64
c. 1.49
d. 3.19

12. Jump to next question.

What is the Hanna Inc.'s cash ratio at the end of the year?

Student Response
a. 0.59
b. 0.64
c. 1.49
d. 3.19

13. Jump to next question.

What is the Hanna Inc.'s total asset turnover at the end of the year?

Student Response
a. 0.59
b. 0.64
c. 1.49
d. 3.19

14. Jump to next question.

What is the Hanna Inc.'s inventory turnover at the end of the year?

Student Response
a. 6.58
b. 0.58
c. 1.28
d. 0.37

15. Jump to next question.

What is the Hanna Inc.'s receivables turnover at the end of the year?

Student Response
a. 6.58
b. 0.58
c. 1.28
d. 0.37

16. Jump to next question.

What is the Hanna Inc.'s total debt ratio at the end of the year?

Student Response
a. 6.58
b. 0.58
c. 1.28
d. 0.37

17. Jump to next question.

What is the Hanna Inc.'s debt-equity ratio at the end of the year?

Student Response
a. 6.58
b. 0.58
c. 1.28
d. 0.37

18. Jump to next question.

What is the Hanna Inc.'s equity multiplier at the end of the year?

Student Response

a. 6.58
b. 1.58
c. 1.28
d. 0.37

19. Jump to next question.

What is the Hanna Inc.'s times-interest-earned ratio at the end of the year?

Student Response
a. 19.29
b. 0.24
c. 17.17
d. 0.37

20. Jump to next question.

What is the Hanna Inc.'s cash coverage ratio at the end of the year?

Student Response
a. 19.29
b. 0.24
c. 17.17
d. 0.37

21. Jump to next question.

What is the profit margin for the year for the Hanna Inc.?

Student Response
a. 19.29
b. 0.24
c. 17.17
d. 0.37

22. Jump to next question.

What is the Hanna Inc.'s return on assets for the year?

Student Response

a. 19.29
b. 0.24
c. 17.17
d. 0.37

23. Jump to next question.

What is the Hanna Inc.'s return on equity for the year?

Student Response
a. 19.29
b. 0.24
c. 17.17
d. 0.37

24. Jump to next question.

What is the Hanna Inc.'s DuPont identity at the end of the year?

Student Response
a. 0.37 x 0.64 x 1.58
b. 0.37 x 1.64 x 2.58
c. 0.37 x 0.64 x 2.58
d. 0.37 x 1.64 x 1.58

25. Jump to next question.

What is the Hanna Inc.'s price-earning ratio at the end of the year?

Student Response
a. 19.29
b. 0.24
c. 17.17
d. 24.93

26. Jump to next question.

What is the Hanna Inc.'s dividend per share for the year?

Student Response
a. 19.29
b. 0.72
c. 17.17
d. 0.37

27. Jump to next question.

What is the Hanna Inc.'s market-to-book ratio at the end of the year?

Student Response
a. 9.34
b. 0.24
c. 17.17
d. 0.37

28. Jump to next question.

Use the following information for the Lowell, Inc. for this and the next two questions

Sales
$200,000
Debt
95,000
Dividends
5,000
Equity
40,000
Net income

16,000

What is the company's sustainable growth rate?

Student Response
a. 19.29%
b. 09.24%
c. 37.93%
d. 08.87%

29. Jump to next question. How much additional debt will Lowell Inc.require to keep the current debt-equity ratio constant if the company were to grow at the sustainable growth rate

Student Response
a. 186,206
b. 131,034
c. 36,034
d. 887,954

30. Jump to next question. At what growth rate could the Lowell Inc. grow if it did not wish to increase the amount of debt?

Student Response
a. 19.29%
b. 09.24%
c. 37.93%
d. 08.87%

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Accounting Basics: Use the following information for this and the next three
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