Question 1

BR Trucking has total sales of $911,300, a total asset turnover of 1.1, and a profit margin of 5.87 percent.Currently, the firm has 18,500 shares outstanding.What are the earnings per share?
A)$2.92
B)$2.97
C)$2.86
D)$2.58
E)$2.89

Accepted Answer

To find the earnings per share (EPS), first calculate the net income using the profit margin: Net Income = Total Sales * Profit Margin = $911,300 * 0.0587 = $53,487.31. Then, divide the net income by the number of shares outstanding: EPS = Net Income / Shares Outstanding = $53,487.31 / 18,500 = $2.89.

Question 2

Steve's Music Supply has a return on equity of 19.3 percent, a profit margin of 10.1 percent, and total equity of $645,685. What is the net income?
A)$65,214.19
B)$123,383.71
C)$124,617.21
D)$65,214.19.
E)$125,863.40

Accepted Answer

The answer of Steve's Music Supply has a return on...

Question 3

The Kids' Mart has a market-to-book ratio of 3.3, net income of $87,100, a book value per share of $18.50, and 7,500 shares of stock outstanding.What is the price-earnings ratio?
A)4.34
B)8.16
C)5.61
D)6.25
E)5.26

Accepted Answer

The answer of The Kids' Mart has a market-to-book ratio...

Question 4

If sales are $211,000, the profit margin is 6.3 percent, and the capital intensity ratio is .94, what is the return on assets?
A)4.42 percent
B)6.08 percent
C)6.39 percent
D)6.92 percent
E)6.70 percent

Accepted Answer

The answer of If sales are $211,000, the profit margin...

Question 5

Discount Outlet has net income of $389,100, a profit margin of 2.8 percent, and a return on assets of 8.6 percent.What is the capital intensity ratio?
A).33
B).67
C)1.49
D)1.34
E)3.07

Accepted Answer

The answer of Discount Outlet has net income of $389,100,...

Question 6

Spring Falls Gifts has sales of $680,300, total assets of $589,100, and a profit margin of 4.3 percent.What is the return on assets?
A)4.30 percent
B)6.54 percent
C)3.83 percent
D)7.01 percent
E)4.97 percent

Accepted Answer

The answer of Spring Falls Gifts has sales of $680,300,...

Question 7

Bed Bug Inn has annual sales of $137,000.Earnings before interest and taxes are equal to 5.8 percent of sales.For the period, the firm paid $4,700 in interest.What is the profit margin if the tax rate is 34 percent?
A)−2.43 percent
B)1.56 percent
C)3.33 percent
D)−5.29 percent
E)−6.11 percent

Accepted Answer

The answer of Bed Bug Inn has annual sales of...

Question 8

Whitt's BBQ has sales of $1,318,000, a profit margin of 7.4 percent, and a capital intensity ratio of .78.What is the total asset turnover rate?
A)1.04
B)1.08
C)1.13
D)1.43
E)1.28

Accepted Answer

The answer of Whitt's BBQ has sales of $1,318,000, a...

Question 9

It takes K's Boutique an average of 53 days to sell its inventory and an average of 16.8 days to collect its accounts receivable.The firm has sales of $942,300 and costs of goods sold of $692,800.What is the accounts receivable turnover rate? Assume a 365-day year.
A)23.69
B)11.41
C)21.73
D)24.23
E)19.55

Accepted Answer

The answer of It takes K's Boutique an average of...

Question 10

Gracie Human Resource Consulting has total revenue of $285,400, cost of goods sold equal to 68 percent of sales, and a profit margin of 9.2 percent.Net fixed assets are $126,400 and current assets are $65,880.What is the total asset turnover rate?
A)1.01
B)1.30
C)1.48
D)1.84
E)4.81

Accepted Answer

Total asset turnover rate = Sales / Total assetsTotal assets = Net fixed assets + Current assetsTotal assets = $126,400 + $65,880 = $192,280Sales = Total revenue / (1 - Cost of goods sold / Sales)Sales = $285,400 / (1 - 0.68) = $900,000Total asset turnover rate = $900,000 / $192,280 = 1.48

Question 11

Phil's Carvings sells its inventory in 93 days, on average.Costs of goods sold for the year are $187,200.What is the average value of the firm's inventory? Assume a 365-day year.
A)$20,129
B)$47,698
C)$57,132
D)$61,096
E)$32,513

Accepted Answer

The average inventory can be calculated using the formula: (Inventory Turnover Days / 365) * Cost of Goods Sold. Here, (93 / 365) * $187,200 = $47,698.

Question 12

Andras Technology has accounts receivable of $35,680, total assets of $538,500, cost of goods sold of $325,400, and a capital intensity ratio of ..90.What is the accounts receivable turnover rate?
A)15.56
B)16.77
C)9.12
D)10.13
E)10.31

Accepted Answer

The answer of Andras Technology has accounts receivable of $35,680,...

Question 13

Healthy Foods has a book value per share of $32.68, earnings per share of $3.09, and a price-earnings ratio of 16.8.What is the market-to-book ratio?
A)1.08
B)1.59
C)1.99
D)2.47
E)2.16

Accepted Answer

Market-to-book ratio = Market price per share / Book value per share= (Price-earnings ratio * Earnings per share) / Book value per share= (16.8 * $3.09) / $32.68= 1.59

Question 14

A firm has sales of $311,000 and net income of $31,600.The price-sales ratio is 3.24 and market price is $36 per share.How many shares are outstanding?
A)20,608
B)27,990
C)28,356
D)30,515
E)31,011

Accepted Answer

The answer of A firm has sales of $311,000 and...

Question 15

Jessica's Sports Wear has $38,100 in receivables and $523,700 in total assets.The total asset turnover rate is 1.17 and the profit margin is 7.3 percent.How long on average does it take to collect the receivables? Assume a 365-day year.
A)26.91 days
B)19.45 days
C)11.68 days
D)31.07 days
E)22.70 days

Accepted Answer

The answer of Jessica's Sports Wear has $38,100 in receivables...

Question 16

ABD common stock is selling for $36.08 a share.The company has earnings per share of $.34 and a book value per share of $12.19.What is the market-to-book ratio?
A)8.71
B)7.69
C)2.96
D)3.97
E)5.92

Accepted Answer

The answer of ABD common stock is selling for $36.08...

Question 17

Jaminda's Holistic Healing has sales of $980,000, cost of goods sold of $765,250, and accounts receivable of $88,640.How long on average does it take the firm's customers to pay for their purchases? Assume a 365-day year.
A)8.63 days
B)15.5 days
C)32.56 days
D)33.01 days
E)42.56 days

Accepted Answer

Days Sales Outstanding (DSO) = (Average Accounts Receivable / Sales) * 365 days= (88,640 / 980,000) * 365 days= 33.01 days

Question 18

KBJ has total assets of $613,000.There are 21,000 shares of stock outstanding with a market value of $13 a share.The firm has a profit margin of 6.2 percent and a total asset turnover of 1.08.What is the price-earnings ratio?
A)6.38
B)7.99
C)6.65
D)5.12
E)7.41

Accepted Answer

The answer of KBJ has total assets of $613,000.There are...

Question 19

Maren's House of Pancakes has sales of $635,400, total equity of $268,000, and a debt-equity ratio of ..6.What is the capital intensity ratio?
A)..67
B).59
C).72
D).89
E)1.67

Accepted Answer

The capital intensity ratio is calculated as total assets divided by sales. First, calculate total assets using the debt-equity ratio: Total Debt = 0.6 * Total Equity = 0.6 * $268,000 = $160,800. Total Assets = Total Debt + Total Equity = $160,800 + $268,000 = $428,800. Capital Intensity Ratio = Total Assets / Sales = $428,800 / $635,400 ≈ 0.67.

Question 20

Dellf's has a profit margin of 3.8 percent on sales of $287,200.The firm currently has 5,000 shares of stock outstanding at a market price of $7.11 per share.What is the price-earnings ratio?
A)3.26
B)8.02
C)11.50
D)5.93
E)12.84

Accepted Answer

The price-earnings ratio is calculated by dividing the market price per share by the earnings per share. The earnings per share is calculated by dividing the net income by the number of shares outstanding. In this case, the net income is $287,200 * 0.038 = $10,897.60. The earnings per share is $10,897.60 / 5,000 = $2.18. The price-earnings ratio is $7.11 / $2.18 = 3.26.

Quiz 3: Working With Financial Statements

BR Trucking has total sales of $911,300, a total asset turnover of 1.1, and a profit margin of 5.87 percent.Currently, the firm has 18,500 shares outstanding.What are the earnings per share?

Steve's Music Supply has a return on equity of 19.3 percent, a profit margin of 10.1 percent, and total equity of $645,685. What is the net income?

The Kids' Mart has a market-to-book ratio of 3.3, net income of $87,100, a book value per share of $18.50, and 7,500 shares of stock outstanding.What is the price-earnings ratio?

If sales are $211,000, the profit margin is 6.3 percent, and the capital intensity ratio is .94, what is the return on assets?

Discount Outlet has net income of $389,100, a profit margin of 2.8 percent, and a return on assets of 8.6 percent.What is the capital intensity ratio?

Spring Falls Gifts has sales of $680,300, total assets of $589,100, and a profit margin of 4.3 percent.What is the return on assets?

Bed Bug Inn has annual sales of $137,000.Earnings before interest and taxes are equal to 5.8 percent of sales.For the period, the firm paid $4,700 in interest.What is the profit margin if the tax rate is 34 percent?

Whitt's BBQ has sales of $1,318,000, a profit margin of 7.4 percent, and a capital intensity ratio of .78.What is the total asset turnover rate?

It takes K's Boutique an average of 53 days to sell its inventory and an average of 16.8 days to collect its accounts receivable.The firm has sales of $942,300 and costs of goods sold of $692,800.What is the accounts receivable turnover rate? Assume a 365-day year.

Gracie Human Resource Consulting has total revenue of $285,400, cost of goods sold equal to 68 percent of sales, and a profit margin of 9.2 percent.Net fixed assets are $126,400 and current assets are $65,880.What is the total asset turnover rate?

Phil's Carvings sells its inventory in 93 days, on average.Costs of goods sold for the year are $187,200.What is the average value of the firm's inventory? Assume a 365-day year.

Andras Technology has accounts receivable of $35,680, total assets of $538,500, cost of goods sold of $325,400, and a capital intensity ratio of ..90.What is the accounts receivable turnover rate?

Healthy Foods has a book value per share of $32.68, earnings per share of $3.09, and a price-earnings ratio of 16.8.What is the market-to-book ratio?

A firm has sales of $311,000 and net income of $31,600.The price-sales ratio is 3.24 and market price is $36 per share.How many shares are outstanding?

Jessica's Sports Wear has $38,100 in receivables and $523,700 in total assets.The total asset turnover rate is 1.17 and the profit margin is 7.3 percent.How long on average does it take to collect the receivables? Assume a 365-day year.

ABD common stock is selling for $36.08 a share.The company has earnings per share of $.34 and a book value per share of $12.19.What is the market-to-book ratio?

Jaminda's Holistic Healing has sales of $980,000, cost of goods sold of $765,250, and accounts receivable of $88,640.How long on average does it take the firm's customers to pay for their purchases? Assume a 365-day year.

KBJ has total assets of $613,000.There are 21,000 shares of stock outstanding with a market value of $13 a share.The firm has a profit margin of 6.2 percent and a total asset turnover of 1.08.What is the price-earnings ratio?

Maren's House of Pancakes has sales of $635,400, total equity of $268,000, and a debt-equity ratio of ..6.What is the capital intensity ratio?

Dellf's has a profit margin of 3.8 percent on sales of $287,200.The firm currently has 5,000 shares of stock outstanding at a market price of $7.11 per share.What is the price-earnings ratio?