1. The Gallery has a profit margin of 5.8 percent and a capital intensity ratio of 1.10. The net profit is $380 and

the tax rate is 34 percent. What are the total sales for the period?

2. The Corner Shoppe has a current ratio of 1.4, net fixed assets of $26,800, and total assets of $32,400. What is

the amount of the current liabilities?

3. On a common-size statement, interest paid is expressed as a percentage of:

a. net income.

b. EBIT.

c. total assets.

d. sales.