1, (10 pts) The Wilson Corporation has the following relationships:

Total Assets $5,000,000

Sales/Total assets 2.0

Return on assets (ROA) 4%

Return on equity (ROE) 8%

NI $1,000,000

What is Wilson's debt ratio?

2.

(10 pts) Given the following transactions, estimate the uses and sources of cash flows (assuming no other transactions took place in that year).

Calculate the net cash flow position for the company during the year, that is, did the cash increase or decrease and by how much during the year?

2018 2019

AR 20,000,000 42,000,000

AP 18,000,000 5,000,000

S-T D (short term debt) 4,000,000 6,000,000

Marketable Securities 3,000,000 9,000,000