Chapter 3 Exercise PDF

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CHAPTER 3 BWFF2033 PRACTICE 1) Duke's Garage has cash of RM68, accounts receivable of RM142, accounts payable of RM235, and inventory of RM318. What is the value of the quick ratio? A) 2.25 B) .53 C) .71 D) .89 E) 1.35

2) Uptown Men's Wear has accounts payable of RM2,214, inventory of RM7,950, cash of RM1,263, fixed assets of RM8,400, accounts receivable of RM3,907, and long-term debt of RM4,200. What is the value of the net working capital to total assets ratio? A) .31 B) .42 C) .47 D) .51 E) .56

3) Corner Books has a debt-equity ratio of .57. What is the total debt ratio? A) .36 B) .30 C) .44 D) 2.27 E) 2.75

4) SS Stores has total debt of RM4,910 and a debt-equity ratio of 0.52. What is the value of the total assets? A) RM16,128.05 B) RM7,253.40 C) RM9,571.95 D) RM11,034.00 E) RM14,352.31 5) JK Motors has sales of RM96,400, costs of RM53,800, interest paid of RM2,800, and depreciation of RM7,100. The tax rate is 21 percent. What is the value of the cash coverage ratio? A) 15.21 B) 12.14 C) 17.27 D) 23.41 E) 12.68

6) The Up-Towner has sales of RM913,400, costs of goods sold of RM579,300, inventory of RM123,900, and accounts receivable of RM78,900. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? A) 74.19 days B) 84.69 days C) 78.07 days D) 96.46 days E) 71.01 days

7) The Harrisburg Store has net working capital of RM2,715, net fixed assets of RM22,407, sales of RM31,350, and current liabilities of RM3,908. How many dollars' worth of sales are generated from every RM1 in total assets? A) RM1.08 B) RM1.14 C) RM1.19 D) RM84 E) RM93

8) TJ's has annual sales of RM813,200, total debt of RM171,000, total equity of RM396,000, and a profit margin of 5.78 percent. What is the return on assets? A) 8.29 percent B) 6.48 percent C) 9.94 percent D) 7.78 percent E) 8.02 percent

9) Frank's Used Cars has sales of RM807,200, total assets of RM768,100, and a profit margin of 6.68 percent. The firm has a total debt ratio of 54 percent. What is the return on equity? A) 13.09 percent B) 12.04 percent C) 11.03 percent D) 8.56 percent E) 15.26 percent

10) Bernice's has RM823,000 in sales. The profit margin is 4.2 percent and the firm has 7,500 shares of stock outstanding. The market price per share is RM16.50. What is the priceearnings ratio? A) 3.58 B) 3.98 C) 4.32 D) 3.51 E) 4.27

11) Hungry Lunch has net income of RM73,402, a price-earnings ratio of 13.7, and earnings per share of RM.43. How many shares of stock are outstanding? A) 13,520 B) 12,460 C) 165,745 D) 171,308 E) 170,702

12) A firm has 160,000 shares of stock outstanding, sales of RM1.94 million, net income of RM126,400, a price-earnings ratio of 21.3, and a book value per share of RM7.92. What is the market-to-book ratio? A) 2.12 B) 1.84 C) 1.39 D) 2.45 E) 2.69

13) Taylor's Men's Wear has a debt-equity ratio of 48 percent, sales of RM829,000, net income of RM47,300, and total debt of RM206,300. What is the return on equity? A) 19.29 percent B) 11.01 percent C) 15.74 percent D) 18.57 percent E) 14.16 percent

14) Nielsen's has inventory of RM29,406, accounts receivable of RM46,215, net working capital of RM4,507, and accounts payable of RM48,919. What is the quick ratio? A) 1.55 B) .49 C) 1.32 D) .94 E) .92

15) The Strong Box has sales of RM859,700, cost of goods sold of RM648,200, net income of RM93,100, and accounts receivable of RM102,300. How many days of sales are in receivables? (use 356 days per year) A) 57.60 days B) 40.32 days C) 54.53 days D) 29.41 days

E) 43.43 days

16) Gem Jewelers has current assets of RM687,600, total assets of RM1,711,000, net working capital of RM223,700, and long-term debt of RM450,000. What is the debt-equity ratio? A) .87 B) .94 C) 1.21 D) 1.15 E) 1.06

17) Green Yard Care has net income of RM62,300, a tax rate of 21 percent, and a profit margin of 6.7 percent. Total assets are RM1,100,500 and current assets are RM328,200. How many dollars of sales are being generated from every dollar of net fixed assets? A) RM2.83 B) RM1.37 C) RM.84 D) RM1.20 E) RM1.23

18) Jensen's Shipping has total assets of RM694,800 at year's end. The beginning owners' equity was RM362,400. During the year, the company had sales of RM711,000, a profit margin of 5.2 percent, a tax rate of 21 percent, and paid RM12,500 in dividends. What is the equity multiplier at year-end? A) 1.67 B) 1.72 C) 1.93 D) 1.80 E) 1.86

19) Western Gear has net income of RM12,400, a tax rate of 21 percent, and interest expense of RM1,600. What is the times interest earned ratio for the year? A) 9.63 B) 7.75 C) 10.81 D) 14.97 E) 10.97

20) Townsend Enterprises has a PEG ratio of 5.3, net income of RM49,200, a price-earnings ratio of 17.6, and a profit margin of 7.1 percent. What is the earnings growth rate? A) 2.48 percent B) 1.06 percent C) 3.32 percent D) 5.20 percent

E) 10.60 percent...