1.

Pioneer Aviation has total liabilities of $24,300 and total equity of $47,200. Current assets are $8,700. What is the common-size percentage for the current assets?

12.17%

13.85%

18.43%

35.80%

2.

Glenwood Fruit Growers has current assets of $8,800, total assets of $34,600, current liabilities of $7,600, and total liabilities of $36,000. What is the current ratio?

1.21

1.26

1.16

.96

3.

Which one of the following will increase the current ratio but not the quick ratio?

decrease in cash

increase in accounts payable

increase in inventory

decrease in accounts receivable

4.

Welcome Inn has total equity of $468,000 and a debt-equity ratio of .51. What is the firms equity multiplier?

1.51

1.96

1.37

.49

5.

The debt-equity ratio is equal to which one of the following?

Long-term debt / Total equity

Equity multiplier 1

(Long-term debt + Total equity) / Total equity

Equity multiplier + 1

6.

Arlenes Outlet has sales of $404,000. Costs of goods sold equal 63 percent of sales. The store has $41,250 in inventory. On average, how long does inventory set on the shelf before it is sold?

39.58 days

37.27 days

66.24 days

59.16 days

7.

Trails End has sales of $529,000, a tax rate of 33 percent, and a profit margin of 6.1 percent. What is the return on equity if the firm has total equity of $282,000?

12.96 percent

15.36 percent

7.67 percent

11.44 percent

8.

Glotfelty & Sons has sales of $521,000, a profit margin of 4.9 percent, and 38,000 shares of stock outstanding. What is the price-earnings ratio if the stock sells for $14.50 a share?

21.91

21.58

22.75

21.25

9.

Which one of the following is a long-term solvency ratio?

equity multiplier

total asset turnover

price-sales ratio

interval measure

10.

Jennings Lumber has total sales of $649,000, total equity of $409,000, and total assets of $755,000. What is the return on equity if the firms profit margin is 7.0 percent?

14.46 percent

12.87 percent

16.48 percent

11.11 percent

11.

Which one of the following is a correct formula for computing the return on equity?

Profit margin Return on assets Equity multiplier

Profit margin Total asset turnover Debt-equity ratio

Return on assets (1 + Debt-equity ratio)

Return on assets Profit margin

12.

Wakers, Inc., has sales of $40 million, total assets of $26 million, and total debt of $5 million.

Required:

(a)	If the profit margin is 7 percent, what is the net income?
	$2,800,000 $1,820,000 $2,730,000 $1,470,000 $2,520,000

(b)	What is the ROA?
	9.69% 13.33% 56.00% 10.77% 19.23%

(c)	What is the ROE?
	12.00% 10.77% 56.00% 13.33% 19.23%