57) A firm has sales of $215,600, costs of $124,800, interest paid of $3,600, and depreciation of
$11,400. The tax rate is 34 percent. What is the value of the cash coverage ratio?
A) 24.22 times
B) 17.06 times
C) 21.06 times
D) 25.22 times
E) 16.47 times
58) Vaun’s Pet Store paid $24,300 in interest and $32,000 in dividends last year. The times interest
earned ratio is 4.1, and the depreciation expense is $126,200. What is the value of the cash
coverage ratio?
A) 8.77 times
B) 5.19 times
C) 7.75 times
D) 9.29 times
E) 8.20 times
59) Les’ Motors has sales of $482,800, cost of goods sold of $297,400, inventory of $169,600, and
accounts receivable of $52,900. How many days, on average, does it take the firm to sell its
inventory and collect payment on that sale?
A) 265.27 days
B) 185.20 days
C) 248.14 days
D) 138.22 days
E) 284.67 days
60) Burnside’s has accounts receivable of $42,600, inventory of $97,200, sales of $614,200, and
cost of goods sold of $298,400. How long does it take the firm to sell its inventory and collect
payment on the sale?
A) 107.14 days
B) 136.06 days
C) 127.78 days
D) 144.21 days
E) 115.52 days
61) Western Wear has net working capital of $5,200, net fixed assets of $128,000, sales of
$114,000, and current liabilities of $9,800. From each $1 in total assets, the firm generates sales of
A) $1.25
B) $1.52
C) $0.80
D) $0.66
E) $1.29
62) Rosario’s has sales of $219,600, total debt of $54,800, total equity of $109,400, and a profit
margin of 7.2 percent. What is the return on assets?
A) 6.21%
B) 9.63%
C) 7.39%
D) 8.37%
E) 7.97%
63) The Cycle Shop has sales of $372,400 and a profit margin of 6.1 percent. There are 12,000
shares of stock outstanding with a market price per share of $8.64. What is the price-earnings
ratio?
A) 8.47
B) 3.59
C) 9.09
D) 4.56
E) 3.64
64) Patti’s has net income of $87,300, a price-earnings ratio of 11.8, and earnings per share of
$1.13. How many shares of stock are outstanding?
A) 6,547 shares
B) 38,690 shares
C) 77,257 shares
D) 93,590 shares
E) 8,750 shares
65) A firm has 21,000 shares of stock outstanding, sales of $927,000, a profit margin of 4.8
percent, a price-earnings ratio of 6.2, and a book value per share of $5.80. What is the
market-to-book ratio?
A) 1.67 times
B) 3.98 times
C) 4.27 times
D) 3.29 times
E) 2.26 times
66) A firm has 4,250 shares of stock outstanding with a market value of $16.65 a share, $64,800 of
long-term debt with an interest rate of 7.5 percent, $21,900 of short-term debt, cash on hand of
$5,200, sales of $213,000, costs of $126,200, and depreciation of $13,400. The tax rate is 35
percent. What is the enterprise value multiple?
A) 1.50 times
B) 1.67 times
C) 2.33 times
D) 2.18 times
E) 1.92 times
67) Nelson Farms has 6,500 shares of stock outstanding, with a market value of $13.30 a share,
and $31,000 of long-term debt, bearing an interest rate of 7.1 percent. Current assets consist of
$1,600 in cash, $15,700 in accounts receivable, and $42,900 in inventory. Accounts payable are
$11,300. What is the firm’s enterprise value?
A) $121,600
B) $115,850
C) $157,600
D) $184,250
E) $117,450
68) Cellar Wines has a debt-equity ratio of 0.54, sales of $728,700, net income of $94,900, and
total debt of $382,000. What is the return on equity?
A) 16.67%
B) 9.05%
C) 10.75%
D) 15.50%
E) 13.42%
69) 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 quick ratio?
A) 1.03 times
B) 1.26 times
C) 0.96 times
D) 0.82 times
E) 1.08 times
70) 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 equity multiplier?
A) 2.31 times
B) 1.93 times
C) 2.50 times
D) 2.08 times
E) 1.59 times
71) 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 times interest earned ratio?
A) 9.78 times
B) 7.29 times
C) 8.63 times
D) 8.33 times
E) 9.63 times
72) 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 cash coverage ratio?
A) 7.90 times
B) 12.04 times
C) 11.99 times
D) 9.63 times
E) 13.67 times
73) 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 return on equity?
A) 46.36%
B) 42.74%
C) 25.12%
D) 18.42%
E) 6.67%