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43. The financial statements of Burnaby Mountain Trading Company are shown below.
Note: The common shares are trading in the stock market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's times-
interest-earned ratio for 2012 is _________.
44. The financial statements of Burnaby Mountain Trading Company are shown below.
Note: The common shares are trading in the stock market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's fixed-asset
turnover ratio for 2012 is _________. (Please keep in mind that when a ratio involves both income
statement and balance sheet numbers, the balance sheet numbers for the beginning and end of
the year must be averaged.)
45. The financial statements of Burnaby Mountain Trading Company are shown below.
Note: The common shares are trading in the stock market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's asset
turnover ratio for 2012 is _________. (Please keep in mind that when a ratio involves both income
statement and balance sheet numbers, the balance sheet numbers for the beginning and end of
the year must be averaged.)
46. The financial statements of Burnaby Mountain Trading Company are shown below.
Note: The common shares are trading in the stock market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's return-on-
sales ratio for 2012 is _________.
47. The financial statements of Burnaby Mountain Trading Company are shown below.
Note: The common shares are trading in the stock market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's return-on-
equity ratio for 2012 is _________. (Please keep in mind that when a ratio involves both income
statement and balance sheet numbers, the balance sheet numbers for the beginning and end of
the year must be averaged.)
48. The financial statements of Burnaby Mountain Trading Company are shown below.
Note: The common shares are trading in the stock market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's P/E ratio for
2012 is _________.
49. The financial statements of Burnaby Mountain Trading Company are shown below.
Note: The common shares are trading in the stock market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's market-to-
book value for 2012 is _________.
50. A firm has a net profit/pretax profit ratio of .6, a leverage ratio of 1.5, a pretax profit/EBIT
of .7, an asset turnover ratio of 4, a current ratio of 2, and a return-on-sales ratio of 6%. Its ROE is
_________.
51. A firm has an ROA of 19%, a debt/equity ratio of 1.8, and a tax rate of 30%, and the
interest rate on its debt is 7%. Its ROE is _________.
52. The level of real income of a firm can be distorted by the reporting of depreciation and
interest expense. During periods of low inflation, the level of reported depreciation tends to
__________ income, and the level of interest expense reported tends to __________ income.
53. If a firm's ratio of stockholders' equity/total assets is lower than the industry average and
its ratio of long-term debt/stockholders' equity is also lower than the industry average, this would
suggest that the firm _________.
54. A firm has a lower inventory turnover, a longer ACP, and a lower fixed-asset turnover than
the industry averages. You should not be surprised to find that this firm has:
I. Lower ATO than the industry average
II. Lower ROA than the industry average
III. Lower ROE than the industry average
