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101.
Canine Supply has sales of $2,200, total assets of $1,400, and a debt-equity
ratio of 0.5. Its return on equity is 15 percent. What is the net income?
102.
Billings, Inc. has net income of $161,000, a profit margin of 7.6 percent, and
an accounts receivable balance of $127,100. Assume that 66 percent of
sales are on credit. What is the days' sales in receivables?
103.
Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of
1.6. Current liabilities are $700, sales are $4,440, the profit margin is 9.5
percent, and the return on equity is 19.5 percent. How much does the firm
have in net fixed assets?
104.
A firm has a debt-total asset ratio of 74 percent and a return on total assets
of 13 percent. What is the return on equity?
105.
The Dockside Inn has net income for the most recent year of $8,450. The
tax rate was 35 percent. The firm paid $1,300 in total interest expense and
deducted $1,900 in depreciation expense. What was the cash coverage ratio
for the year?
106.
Beach Wear has current liabilities of $350,000, a quick ratio of 1.65,
inventory turnover of 3.2, and a current ratio of 2.9. What is the cost of
goods sold?
Essay Questions
107.
Assume a firm has a positive cash balance which is increasing annually.
Why then is it important to analyze a statement of cash flows?
108.
You need to analyze a firm's performance in relation to its peers. You can
do this either by comparing the firms' balance sheets and income
statements or by comparing the firms' ratios. If you only had time to use one
means of comparison which method would you use and why?
109.
In general, what does a high Tobin's Q value indicate and how reliable does
that value tend to be?
110.
What value does the PEG ratio provide to financial analysts?
111.
What value can the price-sales ratio provide to financial managers that the
price-earnings ratio cannot?
112.
It is commonly recommended that the managers of a firm compare the
performance of their firm to that of its peers. Increasingly, this is becoming
a more difficult task. Explain some of the reasons why comparisons of this
type can frequently be either difficult to perform or produce misleading
results.
