1). Gardial & Son has an ROA of 12%, a 5% profit margin, and a return on equity equal to 20%. What is the companys total assets turnover? What is the firms equity multiplier?

2) Ace Industries has current assets equal to $3 million. The companys current ratio is 1.5, and its quick ratio is 1.0. What is the firms level of current liabilities? What is the firms level of inventories?

3) Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.2 Return on assets (ROA) 4% Return on equity (ROE) 7% Calculate Haslams profit margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-to-assets ratio.

4) The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelsons short-term debt (notes payable) increase without pushing its current ratio below 2.0? What will be the firms quick ratio after Nelson has raised the maximum amount of short-term funds?

5) The Morris Corporation has $600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morriss annual sales are $3 million, its average tax rate is 40%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 5 to 1, then its bank will refuse to renew the loan and bankruptcy will result. What is Morriss TIE ratio?

(PLEASE show work using Excel)