Question
1- The Cavo Company has an ROA of 8.9 percent, a profit margin of 8.25 percent, and an ROE of 14.25 percent. What is the
1- The Cavo Company has an ROA of 8.9 percent, a profit margin of 8.25 percent, and an ROE of 14.25 percent.
What is the companys total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total asset turnover times What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equity multiplier times
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2-SDJ, Inc., has net working capital of $1,240, current liabilities of $6,800, and inventory of $1,210.
What is the current ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current ratio times What is the quick ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Quick ratio times
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3-Aquilera, Inc., has sales of $18.8 million, total assets of $13.8 million, and total debt of $4.6 million. The profit margin is 11 percent. What is the company's net income? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Net income _____ $ What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) ROA _____ % What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) ROE _____ %
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4- Fincher, Inc., has a total debt ratio of .61.
What is its debtequity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Debtequity ratio _____ times What is its equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equity multiplier _____ times
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5-
Rossdale, Inc., had additions to retained earnings for the year just ended of $644,000. The firm paid out $35,000 in cash dividends, and it has ending total equity of $7.39 million. If the company currently has 760,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Earnings per share | $ |
Dividends per share | $ |
Book value per share | $ |
If the stock currently sells for $30.90 per share, what is the market-to-book ratio? The priceearnings ratio? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Market-to-book ratio _______ | times | |
Priceearnings ratio _______ | times | |
If total sales were $10.69 million, what is the pricesales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Pricesales ratio _____ times
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6- Jiminy Cricket Removal has a profit margin of 9 percent, total asset turnover of 1.03, and ROE of 14.43 percent. What is this firms debtequity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Debtequity ratio _______ times
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7- Kalebs Karate Supply had a profit margin of 8 percent, sales of $28.6 million, and total assets of $7.6 million. What was the total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total asset turnover _______ times If management set a goal of increasing total asset turnover to 4 times, what would the new sales figure need to be, assuming no increase in total assets? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole dollar, e.g., 32.) Sales $ _________
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8- Carroll, Inc., has a total debt ratio of .59, total debt of $319,000, and net income of $39,250. What is the companys return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Return on equity ______ %
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9- Ames, Inc., has a current stock price of $46.50. For the past year, the company had net income of $6,750,000, total equity of $21,680,000, sales of $40,000,000, and 5.1 million shares of stock outstanding.
What are earnings per share (EPS)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Earnings per share $ ______ What is the priceearnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Priceearnings ratio ______ times What is the pricesales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Pricesales ratio _______ times What is the book value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Book value per share $ _____ What is the market-to-book ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Market-to-book ratio ______ times
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10- Dimeback Co. has total assets of $9,800,000 and a total asset turnover of 2.48 times. Assume the return on assets is 10 percent. What is its profit margin? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit margin _____ %
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11-The Dahlia Company has net income of $166,850. There are currently 32.25 days sales in receivables. Total assets are $855,000, total receivables are $148,000, and the debtequity ratio is .60. What is the companys profit margin? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit margin __________ % What is the companys total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total asset turnover _________ times What is the companys ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ROE __________ %
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12- Some recent financial statements for Smolira Golf, Inc., follow.
SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016 | ||||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Assets | Liabilities and Owners Equity | |||||||||||||||
Current assets | Current liabilities | |||||||||||||||
Cash | $ | 3,061 | $ | 3,057 | Accounts payable | $ | 2,178 | $ | 2,650 | |||||||
Accounts receivable | 4,742 | 5,731 | Notes payable | 1,775 | 2,166 | |||||||||||
Inventory | 12,578 | 13,732 | Other | 95 | 112 | |||||||||||
Total | $ | 20,381 | $ | 22,520 | Total | $ | 4,048 | $ | 4,928 | |||||||
Long-term debt | $ | 12,900 | $ | 15,660 | ||||||||||||
Owners equity | ||||||||||||||||
Common stock and paid-in surplus | $ | 40,500 | $ | 40,500 | ||||||||||||
Fixed assets | Accumulated retained earnings | 15,679 | 39,477 | |||||||||||||
Net plant and equipment | $ | 52,746 | $ | 78,045 | Total | $ | 56,179 | $ | 79,977 | |||||||
Total assets | $ | 73,127 | $ | 100,565 | Total liabilities and owners equity | $ | 73,127 | $ | 100,565 | |||||||
SMOLIRA GOLF, INC. 2016 Income Statement | |||||
Sales | $ | 188,370 | |||
Cost of goods sold | 126,703 | ||||
Depreciation | 5,283 | ||||
EBIT | $ | 56,384 | |||
Interest paid | 1,380 | ||||
Taxable income | $ | 55,004 | |||
Taxes | 19,251 | ||||
Net income | $ | 35,753 | |||
Dividends | $ | 11,955 | |||
Retained earnings | 23,798 | ||||
Construct the DuPont identity for Smolira Golf. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin and return on equity as a percent.)
Profit margin | % | |
Total asset turnover | times | |
Equity multiplier | times | |
Return on equity | % | |
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