1. Calculating Liquidity Ratios. SDJ, Inc., has net working capital of $2,170, current liabilities of $4,590, and inventory of $3,860. What is the current ratio? What is the quick ratio?

2. Calculating Profitability Ratios. DTO, Inc., has sales of $16.7 million, total assets of $12.9 million, and total debt of $5.7 million. If the profit margin is 5 percent, what is net income? What is ROA? What is ROE?

3. Calculating the Average Collection Period. Twist Corp. has a current accounts receivable balance of $537,810. Credit sales for the year just ended were $5,473,640. What is the receivables turnover? The days sales in receivables? How long did it take on average for credit customers to pay off their accounts during the past year?

4. Calculating Inventory Turnover. The King Corporation has ending inventory of $386,735, and cost of goods sold for the year just ended was $4,981,315. What is the inventory turnover? The days sales in inventory? How long on average did a unit of inventory sit on the shelf before it was sold?

5. Calculating Leverage Ratios. Queen, Inc., has a total debt ratio of .46. What is its debt-equity ratio? What is its equity multiplier?

6. Calculating Market Value Ratios. Makers Corp. had additions to retained earnings for the year just ended of $415,000. The firm paid out $220,000 in cash dividends, and it has ending total equity of $5.6 million. If the company currently has 170,000 shares of common stock outstanding, what are earnings per share? Dividends per share? Book value per share? If the stock currently sells for $65 per share, what is the market-to-book ratio? The price-earnings ratio? If the company had sales of $7.45 million, what is the price-sales ratio?

9. Sources and Uses of Cash. Based only on the following information for Thrice Corp., did cash go up or down? By how much? Classify each event as a source or use of cash.

10. Calculating Average Payables Period. Heritage, Inc., had a cost of goods sold of $68,314. At the end of the year, the accounts payable balance was $15,486. How long on average did it take the company to pay off its suppliers during the year? What might a large value for this ratio imply?

11. Enterprise Value-EBITDA Multiple. The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, while the income statement has EBIT of $91,000 and a total of $157,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company?

12. Equity Multiplier and Return on Equity. SME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. What is the equity multiplier? Return on equity? Net income?

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Use this information to work Problems 16 and 17

16. Sources and Uses of Cash. For each account on this companys balance sheet, show the change in the account during 2018 and note whether this change was a Page 87source or use of cash. Do your numbers add up and make sense? Explain your answer for total assets as compared to your answer for total liabilities and owners equity.

17. Calculating Financial Ratios. Based on the balance sheets given for Just Dew It, calculate the following financial ratios for each year:

Current ratio.

Quick ratio.

Cash ratio.

NWC to total assets ratio

Debt-equity ratio and equity multiplier.

Total debt ratio and long-term debt ratio.

21. Profit Margin. In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you pay your child $1.50 to go buy $50 worth of groceries, then your child makes twice as much on the trip as we do. Youve collected the following information from the grocery chains financial statements below. Evaluate the grocery chains claim. What is the basis for the statement? Is this claim misleading? Why or why not?

26. Calculating Financial Ratios. Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate):

Short-term solvency ratios:

a. Current ratio. ___________

b. Quick ratio. ___________

c. Cash ratio. ___________

Asset utilization ratios:

d. Total asset turnover. ___________

e. Inventory turnover. ___________

f. Receivables turnover. ___________

Long-term solvency ratios:

g. Total debt ratio. ___________

h. Debt-equity ratio. ___________

i. Equity multiplier. ___________

j. Times interest earned ratio. ___________

k. Cash coverage ratio.

Profitability ratios:

l. Profit margin. ___________

m. Return on assets. ___________

n. Return on equity. ___________