25 question one houre 15 minutes left.
A fire has destroyed a large percentage of the financial records of the Strongwell Co. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 13.8 percent. Sales were $979,000, the total debt ratio was 0.42, and total debt was $548,000. What is the return on assets?
6.92 percent
8.00 percent
8.45 percent
9.03 percent
9.29 percent
2 points
Which one of the following occupations best fits into the international area of finance?
Bank teller
Treasury bill analyst
Currency trader
Insurance risk manager
Local bank manager
True Blue Transport has a current stock price of $27. For the past year, the company had net income of $2,187,400, total equity of $13,892,300, sales of $26,511,000, and 2.5 million shares outstanding. What is the market-to-book ratio?
3.54
3.81
3.99
4.27
4.86
Adell Furniture has a profit margin of 8.2 percent and a dividend payout ratio of 40 percent. What is the plowback ratio?
8.20 percent
27.33 percent
54.60 percent
60.00 percent
68.20 percent
The Medicine Shoppe has a return on equity of 19.2 percent, a profit margin of 11.6 percent, and total equity of $738,000. What is the net income?
$85,608
$113,875
$141,696
$146,542
$149,897
Andersen’s Nursery has sales of $318,400, costs of $199,400, depreciation expense of $28,600, interest expense of $1,100, and a tax rate of 34 percent. The firm paid out $16,500 in dividends. What is the addition to retained earnings?
$36,909
$42,438
$44,141
$47,208
$47,615
Which one of the following is a working capital decision?
How should the firm raise additional capital to fund its expansion?
What debt-equity ratio is best suited to the firm?
What is the cost of debt financing?
Which type of debt is best suited to finance the inventory?
How much cash should the firm keep in reserve?
Earth Fare Foods has total assets of $229,800, net fixed assets of $71,500, long-term debt of $52,000, and total debt of $78,700. If inventory is $45,000, what is the current ratio?
0.20
0.46
0.84
1.18
5.93
Your firm has cash of $3,800, accounts receivable of $8,600, inventory of $33,100, and net working capital of $1,100. What is the cash ratio?
0.08
0.09
0.90
1.21
3.45
Baugh and Essary reports the following account balances: inventory of $17,600, equipment of $128,300, accounts payable of $24,700, cash of $11,900, and accounts receivable of $31,900. What is the amount of the current assets?
$46,700
$56,000
$61,400
$175,000
$199,700
Will and Bill both enjoy sunshine, water, and surfboards. Thus, the two friends decided to create a business together renting surfboards, paddle boats, and inflatable devices in California. Will and Bill will equally share in the decision making and in the profits or losses. Which type of business did they create if they both have full personal liability for the firm’s debts? </div