74) You have obtained the following information for Blue Bell Farms. The tax rate is 34 percent.
Cash
$
124
Net fixed assets
2,498
Accrued expenses
135
Inventory
1,027
Long-term debt
1,876
Sales
3,850
Costs
2,220
Accounts payable
486
Depreciation
321
Interest paid
136
Accounts receivable
518
Dividends paid
281
What is the total asset turnover?
A) 0.86 times
B) 1.17 times
C) 1.39 times
D) 0.92 times
E) 1.05 times
75) You have obtained the following information for Blue Bell Farms. The tax rate is 34 percent.
Cash
$
124
Net fixed assets
2,498
Accrued expenses
135
Inventory
1,027
Long-term debt
1,876
Sales
3,850
Costs
2,220
Accounts payable
486
Depreciation
321
Interest paid
136
Accounts receivable
518
Dividends paid
281
What is the days’ sales in receivables?
A) 35.17 days
B) 46.17 days
C) 48.30 days
D) 49.11 days
E) 36.01 days
76) You have obtained the following information for Blue Bell Farms. The tax rate is 34 percent.
Cash
$
124
Net fixed assets
2,498
Accrued expenses
135
Inventory
1,027
Long-term debt
1,876
Sales
3,850
Costs
2,220
Accounts payable
486
Depreciation
321
Interest paid
136
Accounts receivable
518
Dividends paid
281
What is the debt-equity ratio?
A) 0.75 times
B) 1.33 times
C) 1.50 times
D) 0.98 times
E) 1.22 times
77) You have obtained the following information for Blue Bell Farms. The tax rate is 34 percent.
Cash
$
124
Net fixed assets
2,498
Accrued expenses
135
Inventory
1,027
Long-term debt
1,876
Sales
3,850
Costs
2,220
Accounts payable
486
Depreciation
321
Interest paid
136
Accounts receivable
518
Dividends paid
281
What is the profit margin?
A) 20.11%
B) 4.58%
C) 9.78%
D) 7.30%
E) 14.29%
78) Supra’s has sales of $919,800, total assets of $949,200, a profit margin of 7.3 percent, and a
total debt ratio of 0.48. What is the return on equity?
A) 14.74%
B) 13.60%
C) 8.71%
D) 10.22%
E) 16.49%
79) Southern Markets has a profit margin of 4.2 percent, a return on assets of 9.7 percent, and a
debt-equity ratio of 0.51. What is the return on equity?
A) 18.33%
B) 13.49%
C) 11.28%
D) 14.65%
E) 16.16%
80) Marcel’s has a debt-equity ratio of 0.32, a capital intensity ratio of 1.02, and a profit margin of
6.7 percent. What is the return on equity?
A) 8.67%
B) 7.89%
C) 13.13%
D) 14.57%
E) 12.47%
81) Juno’s has sales of $528,000, a tax rate of 34 percent, a dividend payout ratio of 35 percent, and
a profit margin of 5.7 percent. What is the addition to retained earnings?
A) $10,503.00
B) $19,562.40
C) $11,207.00
D) $18,472.42
E) $19,863.36
82) Used Auto Sales has sales for this year of $418,000, current liabilities of $190,400, and net
working capital of $21,700. The projected sales for next year are $450,000. All current accounts
change directly with sales. What is the projected value of current assets for next year?
A) $200,306.56
B) $204,013.11
C) $192,626.23
D) $228,337.32
E) $205,706.56
83) Rossiter’s currently has total assets of $203,000, long-term debt of $78,400, and current
liabilities of $36,700. The dividend payout ratio is 25 percent and the profit margin is 5.8 percent.
Assume all assets and current liabilities change spontaneously with sales and the firm is currently
operating at full capacity. What is the external financing need if the current sales of $185,000 are
projected to increase by 5 percent?
A) $182.40
B) –$54.82
C) $162.09
D) $387.40
E) –$134.88
84) Jams and Jellies has net fixed assets of $879,000, long-term debt of $368,000, current
liabilities of $136,000, and net working capital of $13,400. The retention ratio is 50 percent and the
profit margin is 5.8 percent. Assume all assets and current liabilities change spontaneously with
sales and the firm is currently operating at full capacity. What is the external financing need if the
current sales of $748,000 are projected to increase by 3 percent?
A) $8,212.12
B) $11,506.60
C) $6,390.18
D) $1,387.58
E) $4,429.24
85) Tree Top Furniture has current sales of $287,600 and fixed assets of $314,000. The firm is
currently operating at 96 percent of capacity. What is the maximum percentage increase the firm
can have in sales without investing in additional fixed assets?
A) 4.17%
B) 4.00%
C) 6.72%
D) 3.92%
E) 6.33%
86) Martin’s Lumber has a profit margin of 7 percent and a dividend payout ratio of 30 percent.
The total asset turnover is 0.90, and the debt-equity ratio is 0.45. What is the sustainable rate of
growth?
A) 6.33%
B) 6.83%
C) 6.67%
D) 6.90%
E) 6.99%
87) Nails and More has net income of $13,100, total equity of $86,000, a dividend payout ratio of
25 percent, and an equity multiplier of 1.4. What is the internal rate of growth?
A) 4.03%
B) 4.63%
C) 8.01%
D) 3.54%
E) 8.89%
88) The Top Shop has net income of $648 and total equity of $6,600. The debt-equity ratio is 0.6
and the plowback ratio is 55 percent. What is the internal growth rate?
A) 3.49%
B) 3.87%
C) 4.92%
D) 5.88%
E) 4.33%