78) Frank’s Welding has net fixed assets of $36,200, total assets of $51,300, long-term debt of
$22,000, and total debt of $29,700. What is the net working capital to total assets ratio?
A) 12.18 percent
B) 16.82 percent
C) 14.42 percent
D) 17.79 percent
E) 9.90 percent
79) The Green Fiddle has current liabilities of $28,000, sales of $156,900, and cost of goods sold
of $62,400. The current ratio is 1.22 and the quick ratio is .71. How many days on average does
it take to sell the inventory?
A) 128.13 days
B) 74.42 days
C) 199.81 days
D) 147.46 days
E) 83.53 days
80) Green Yard Care has net income of $62,300, a tax rate of 21 percent, and a profit margin of
6.7 percent. Total assets are $1,100,500 and current assets are $328,200. How many dollars of
sales are being generated from every dollar of net fixed assets?
A) $2.83
B) $1.37
C) $.84
D) $1.20
E) $1.23
81) Jensen’s Shipping has total assets of $694,800 at year’s end. The beginning owners’ equity
was $362,400. During the year, the company had sales of $711,000, a profit margin of 5.2
percent, a tax rate of 21 percent, and paid $12,500 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
82) Western Gear has net income of $12,400, a tax rate of 21 percent, and interest expense of
$1,600. 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
83) Big Tree Lumber has earnings per share of $1.36. The firm’s earnings have been increasing
at an average rate of 2.9 percent annually and are expected to continue doing so. The firm has
21,500 shares of stock outstanding at a price per share of $23.40. What is the firm’s PEG ratio?
A) 2.27
B) 11.21
C) 4.85
D) 3.94
E) 5.93
84) Townsend Enterprises has a PEG ratio of 5.3, net income of $49,200, 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
85) A firm has total assets with a current book value of $71,600, a current market value of
$82,300, and a current replacement cost of $90,400. What is the value of Tobin’s Q?
A) .85
B) .87
C) .90
D) .94
E) .91
86) Dixie Supply has total assets with a current book value of $368,900 and a current
replacement cost of $486,200. The market value of these assets is $464,800. What is the value of
Tobin’s Q?
A) .79
B) .76
C) .96
D) 1.26
E) 1.05
87) Dandelion Fields has a Tobin’s Q of .96. The replacement cost of the firm’s assets is
$225,000 and the market value of the firm’s debt is $101,000. The firm has 20,000 shares of
stock outstanding and a book value per share of $2.09. What is the market-to-book ratio?
A) 2.75 times
B) 3.18 times
C) 3.54 times
D) 4.01 times
E) 4.20 times
88) The Tech Store has annual sales of $416,000, a price-earnings ratio of 18, and a profit
margin of 3.7 percent. There are 12,000 shares of stock outstanding. What is the price-sales
ratio?
A) .97
B) .67
C) 1.08
D) 1.15
E) .86
89) Lassiter Industries has annual sales of $328,000 with 8,000 shares of stock outstanding. The
firm has a profit margin of 4.5 percent and a price-sales ratio of 1.20. What is the firm’s price-
earnings ratio?
A) 21.9
B) 17.4
C) 18.6
D) 26.7
E) 24.3
90) Drive-Up has sales of $31.4 million, total assets of $27.6 million, and total debt of $14.9
million. The profit margin is 3.7 percent. What is the return on equity?
A) 6.85 percent
B) 9.15 percent
C) 11.08 percent
D) 13.31 percent
E) 14.21 percent
91) Corner Supply has a current accounts receivable balance of $246,000. Credit sales for the
year just ended were $2,430,000. How many days on average did it take for credit customers to
pay off their accounts during this past year?
A) 44.29 days
B) 55.01 days
C) 55.50 days
D) 36.95 days
E) 41.00 days
92) BL Industries has ending inventory of $302,800, annual sales of $2.33 million, and annual
cost of goods sold of $1.41 million. On average, how long did a unit of inventory sit on the shelf
before it was sold?
A) 47.43 days
B) 22.18 days
C) 78.38 days
D) 61.78 days
E) 83.13 days
93) 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?
A) 21.90 days
B) 27.56 days
C) 33.18 days
D) 35.04 days
E) 36.19 days
94) Stone Walls has a long-term debt ratio of .6 and a current ratio of 1.2. Current liabilities are
$800, sales are $7,800, the profit margin is 6.5 percent, and return on equity is 15.5 percent.
What is the amount of the firm’s net fixed assets?
A) $8,880.15
B) $8,017.43
C) $7,666.67
D) $5,848.15
E) $8,977.43
95) A firm has a debt-total asset ratio of 61 percent and a return on total assets of 11.4 percent.
What is the return on equity?
A) 26.27 percent
B) 29.23 percent
C) 18.48 percent
D) 10.95 percent
E) 13.50 percent
96) The Docksider has net income for the most recent year of $24,650 and a combined tax rate of
24 percent. The firm paid $1,800 in total interest expense and deducted $2,900 in depreciation
expense. What was the cash coverage ratio for the year?
A) 20.48 times
B) 11.48 times
C) 19.39 times
D) 20.63 times
E) 13.69 times
97) Beach Wear has current liabilities of $350,000, a quick ratio of 1.65, inventory turnover of
4.7, and a current ratio of 2.9. What is the cost of goods sold?
A) $1,980,500
B) $1,760,750
C) $1,950,000
D) $2,056,250
E) $1,560,000
98) Coulter Supply has a total debt ratio of .46. What is the equity multiplier?
A) .89
B) 1.17
C) 1.47
D) 1.85
E) 2.17
99) Oscar’s Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and
an equity multiplier of 1.49. What is the return on equity?
A) 17.14 percent
B) 18.63 percent
C) 19.67 percent
D) 21.69 percent
E) 22.30 percent
100) A firm has a debt-equity ratio of .62, a total asset turnover of 1.24, and a profit margin of
5.1 percent. The total equity is $489,600. What is the amount of the net income?
A) $28,079
B) $19,197
C) $50,159
D) $40,451
E) $52,418
101) High Mountain Foods has an equity multiplier of 1.72, a total asset turnover of 1.16, and a
profit margin of 4.5 percent. What is the return on assets?
A) 6.94 percent
B) 8.98 percent
C) 2.00 percent
D) 7.74 percent
E) 5.22 percent
102) Lancaster Toys has a profit margin of 5.1 percent, a total asset turnover of 1.84, and a return
on equity of 16.2 percent. What is the debt-equity ratio?
A) .73
B) .42
C) .81
D) .64
E) .83
103) Best-Ever Chicken has a debt-equity ratio of .94. Return on assets is 8.5 percent, and total
equity is $520,000. What is the net income?
A) $44,200
B) $88,880
C) $85,748
D) $41,548
E) $74,909
104) Canine Supply has sales of $2,800, total assets of $1,900, and a debt-equity ratio of .5. Its
return on equity is 15 percent. What is the net income?
A) $210
B) $130
C) $240
D) $350
E) $190