48) Lani’s generated net income of $911, depreciation expense was $47, and dividends paid were
$25. Accounts payables increased by $15, accounts receivables increased by $28, inventory
decreased by $14, and net fixed assets decreased by $8. There was no interest expense. What was
the net cash flow from operating activity?
A) $776
B) $865
C) $959
D) $922
E) $985
49) For the past year, Jenn’s Floral Arrangements had taxable income of $198,600, beginning
common stock of $68,000, beginning retained earnings of $318,750, ending common stock of
$71,500, ending retained earnings of $316,940, interest expense of $11,300, and a tax rate of 21
percent. What is the amount of dividends paid during the year?
A) $157,280
B) $159,935
C) $163,200
D) $153,555
E) $158,704
50) The Floor Store had interest expense of $38,400, depreciation of $28,100, and taxes of
$19,600 for the year. At the start of the year, the firm had total assets of $879,400 and current
assets of $289,600. By year’s end total assets had increased to $911,900 while current assets
decreased to $279,300. What is the amount of the cash flow from investment activity for the
year?
A) −$51,150
B) $21,850
C) $29,300
D) −$70,900
E) −$89,400
51) Williamsburg Market is an all-equity firm that has net income of $96,200, depreciation
expense of $6,300, and an increase in net working capital of $2,800. What is the amount of the
net cash from operating activity?
A) $91,300
B) $99,700
C) $93,400
D) $105,300
E) $113,700
52) The accounts payable of a company changed from $136,100 to $104,300 over the course of a
year. This change represents a:
A) use of $31,800 of cash as investment activity.
B) source of $31,800 of cash as an operating activity.
C) source of $31,800 of cash as a financing activity.
D) source of $31,800 of cash as an investment activity.
E) use of $31,800 of cash as an operating activity.
53) Oil Creek Auto has sales of $3,340, net income of $274, net fixed assets of $2,600, and
current assets of $920. The firm has $430 in inventory. What is the common-size statement value
of inventory?
A) 12.22 percent
B) 44.16 percent
C) 16.54 percent
D) 13.36 percent
E) 46.74 percent
54) Pittsburgh Motors has sales of $4,300, net income of $320, total assets of $4,800, and total
equity of $2,950. Interest expense is $65. What is the common-size statement value of the
interest expense?
A) .89 percent
B) 1.51 percent
C) 1.69 percent
D) 2.03 percent
E) 1.35 percent
55) Last year, which is used as the base year, a firm had cash of $52, accounts receivable of
$223, inventory of $509, and net fixed assets of $1,107. This year, the firm has cash of $61,
accounts receivable of $204, inventory of $527, and net fixed assets of $1,216. What is this
year’s common-base-year value of inventory?
A) .67
B) .91
C) .88
D) 1.04
E) 1.18
56) Duke’s Garage has cash of $68, accounts receivable of $142, accounts payable of $235, and
inventory of $318. What is the value of the quick ratio?
A) 2.25
B) .53
C) .71
D) .89
E) 1.35
57) Uptown Men’s Wear has accounts payable of $2,214, inventory of $7,950, cash of $1,263,
fixed assets of $8,400, accounts receivable of $3,907, and long-term debt of $4,200. What is the
value of the net working capital to total assets ratio?
A) .31
B) .42
C) .47
D) .51
E) .56
58) DJ’s has total assets of $310,100 and net fixed assets of $168,500. The average daily
operating costs are $2,980. What is the value of the interval measure?
A) 31.47 days
B) 47.52 days
C) 56.22 days
D) 68.05 days
E) 104.62 days
59) Corner Books has a debt-equity ratio of .57. What is the total debt ratio?
A) .36
B) .30
C) .44
D) 2.27
E) 2.75
60) SS Stores has total debt of $4,910 and a debt-equity ratio of 0.52. What is the value of the
total assets?
A) $16,128.05
B) $7,253.40
C) $9,571.95
D) $11,034.00
E) $14,352.31
61) JK Motors has sales of $96,400, costs of $53,800, interest paid of $2,800, and depreciation of
$7,100. The tax rate is 21 percent. What is the value of the cash coverage ratio?
A) 15.21
B) 12.14
C) 17.27
D) 23.41
E) 12.68
62) Terry’s Pets paid $2,380 in interest and $2,200 in dividends last year. The times interest
earned ratio is 2.6 and the depreciation expense is $680. What is the value of the cash coverage
ratio?
A) 1.42
B) 2.72
C) 2.94
D) 2.89
E) 2.46
63) The Up-Towner has sales of $913,400, costs of goods sold of $579,300, inventory of
$123,900, and accounts receivable of $78,900. How many days, on average, does it take the firm
to sell its inventory assuming that all sales are on credit?
A) 74.19 days
B) 84.69 days
C) 78.07 days
D) 96.46 days
E) 71.01 days
64) Flo’s Flowers has accounts receivable of $4,511, inventory of $1,810, sales of $138,609, and
cost of goods sold of $64,003. How many days does it take the firm to sell its inventory and
collect the payment on the sale assuming that all sales are on credit?
A) 11.88 days
B) 22.20 days
C) 16.23 days
D) 14.50 days
E) 18.67 days
65) The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of
$31,350, and current liabilities of $3,908. How many dollars’ worth of sales are generated from
every $1 in total assets?
A) $1.08
B) $1.14
C) $1.19
D) $84
E) $93
66) TJ’s has annual sales of $813,200, total debt of $171,000, total equity of $396,000, and a
profit margin of 5.78 percent. What is the return on assets?
A) 8.29 percent
B) 6.48 percent
C) 9.94 percent
D) 7.78 percent
E) 8.02 percent
67) Frank’s Used Cars has sales of $807,200, total assets of $768,100, and a profit margin of 6.68
percent. The firm has a total debt ratio of 54 percent. What is the return on equity?
A) 13.09 percent
B) 12.04 percent
C) 11.03 percent
D) 8.56 percent
E) 15.26 percent
68) Bernice’s has $823,000 in sales. The profit margin is 4.2 percent and the firm has 7,500
shares of stock outstanding. The market price per share is $16.50. What is the price-earnings
ratio?
A) 3.58
B) 3.98
C) 4.32
D) 3.51
E) 4.27
69) Hungry Lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per
share of $.43. How many shares of stock are outstanding?
A) 13,520
B) 12,460
C) 165,745
D) 171,308
E) 170,702
70) A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of
$126,400, a price-earnings ratio of 21.3, and a book value per share of $7.92. What is the
market-to-book ratio?
A) 2.12
B) 1.84
C) 1.39
D) 2.45
E) 2.69
71) Taylor’s Men’s Wear has a debt-equity ratio of 48 percent, sales of $829,000, net income of
$47,300, and total debt of $206,300. What is the return on equity?
A) 19.29 percent
B) 11.01 percent
C) 15.74 percent
D) 18.57 percent
E) 14.16 percent
72) Nielsen’s has inventory of $29,406, accounts receivable of $46,215, net working capital of
$4,507, and accounts payable of $48,919. What is the quick ratio?
A) 1.55
B) .49
C) 1.32
D) .94
E) .92
73) The Strong Box has sales of $859,700, cost of goods sold of $648,200, net income of
$93,100, and accounts receivable of $102,300. How many days of sales are in receivables?
A) 57.60 days
B) 40.32 days
C) 54.53 days
D) 29.41 days
E) 43.43 days
74) Corner Books has sales of $687,400, cost of goods sold of $454,200, and a profit margin of
5.5 percent. The balance sheet shows common stock of $324,000 with a par value of $5 a share,
and retained earnings of $689,500. What is the price-sales ratio if the market price is $43.20 per
share?
A) 4.28
B) 12.74
C) 6.12
D) 4.07
E) 14.51
75) Gem Jewelers has current assets of $687,600, total assets of $1,711,000, net working capital
of $223,700, and long-term debt of $450,000. What is the debt-equity ratio?
A) .87
B) .94
C) 1.21
D) 1.15
E) 1.06
76) Russell’s has annual sales of $649,200, cost of goods sold of $389,400, interest of $23,650,
depreciation of $121,000, and a tax rate of 21 percent. What is the cash coverage ratio for the
year?
A) 8.43
B) 10.99
C) 11.64
D) 5.87
E) 18.22
77) Lawn Care, Inc., has sales of $367,400, costs of $183,600, depreciation of $48,600, interest
of $39,200, and a tax rate of 25 percent. The firm has total assets of $422,100, long-term debt of
$102,000, net fixed assets of $264,500, and net working capital of $22,300. What is the return on
equity?
A) 24.26 percent
B) 15.38 percent
C) 38.96 percent
D) 29.96 percent
E) 17.06 percent