1. Complete the balance sheet in the table that follows for the OptiPlex Company using the following information (if necessary, round figures to the nearest dollar):

Sales $4,000

Net profit margin 10%

Return on equity 25.0%

Total asset turnover ratio 1.0x

Gross profit margin 30.0%

Average collection period 40 days

Current ratio 3.0x

Dividend payout ratio 65.0%

Quick ratio1.0x

Balance Sheet

Note: 90% of all sales are credit sales; 10% are cash sales. Assume a 360-day year.

Accounts receivable:

Inventories:

Fixed assets:

Total assets:

Current liabilities:

Long-term debt:

Equity:

Total liabilities and equity:

2.Balance sheets for Labal Company for 2011 and 2012 are as follows: Income Statements Labal Company For the Years Ending September 30, 2011 and 2012

2011 2012

Cash 100 200

Net accounts receivable 1500 2200

Inventories 3000 3600

Current assets 4600 6000

Net fixed assets 2100 3100

Total assets 6700 9100

Bank loan (line of credit) 300 400

Accounts payable 1600 1900

Accruals 100 200

Current liabilities 2000 2500

Long term bank loan 1800 1900

Common stock ($0.15 par) 300 300

Retained earnings 2400 3600

Total liabilities and equity 6700 9100

2011 2012

Current ratio:

Average collection period:

Inventory turnover ratio

Total asset turnover ratio:

Payable ratio:

Debt ratio:

Cash conversion cycle:

Net profit margin:

Return on equity:

3.If ROA (return on assets) = 7% and if ROE (return on equity) = 51%, what is the firm's debt ratio (i.e., Debt/Total assets). Assume, as always, that the balance sheet identity equation holds.

Record your answer as a percent rounded to one decimal place, but do not include the percent sign in your answer. For example, record 0.3428543 = 34.28543% as 34.3.

4.If ROA (return on assets) = 13% and if ROE (return on equity) = 44%, what is the firm's equity multiplier (i.e., Total assets/Equity).

Round your answer to two decimal places. For example, record 1.31854 as 1.32.

5.Given the following information for the Duke Tire Company, find the firm'sdebt ratio(i.e., total liabilities / total assets):

• ROE (N/E) = 0.27 (expressed as a decimal)
• Totalassetturnoverratio(S/A)=4.5
• Net profit margin (N/S) = 0.10 (expressed as a decimal)

Record your answer as a percent rounded to one decimal place, but do not include a percent sign in your answer. For example, record .347924 = 34.7924% as 34.8.

6.Given the following information for the Duke Tire Company, findROA(Return on Assets):

• Debt ratio (D/A) = 0.38 (expressed as a decimal)
• Total asset turnover ratio (S/A) = 1.32
• Sales (S) = $10,000
• Net profit margin = 0.05 (expressed as a decimal)

Record your answer as a percent rounded to one decimal place, but do not include a percent sign in your answer. For example, record .347924 = 34.7924% as 34.8.

7.If a firm has a debt ratio (i.e., D/A) of 55%, what is the firm's debt to equity (i.e., D/E) ratio?

Record your answer as a ratio rounded to 2 decimal places. For example, record D/E = 100/180 = 0.56 or D/E = 300/125 = 2.40.