1. will cause the cash flow from assets to increase. For a tax paying firm, an increase in a Net capital spending (b Depreciation c. Taxes d. Change in net working capital 2. Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt ratio of 64 percent. What is the return on equity? a. 13.09 percent b. 16.04 percent c. 19.64 percent d. 21.03 percent 3. Shareholders' equity: a. ls equal to total assets plus total liabilities. b. Decreases whenever new shares of stock are issued. c. Includes patents, preferred stock, and common stock. d. Represents the residual value of a firm. 4. Your firm has total assets of $4,900, fixed assets of $3,200, long-term debt of $2,900, and short-term debt of $1,400. What is the amount of net working capital? a. -$100 b. $300 c. $600 d. $900 5. A firm has total debt of $5,000 and a debt-equity ratio of .25. What is the value of the total assets? a $10,000 b. $15,000 c. $20,000 d. $25,000 16. The Up-Towner has sales of $900,000, costs of goods sold of $500,000, inventory of $125,000, and accounts receivable of $70,000. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? a. 74.19 days b. 91.25 days c. 118.08 days d. 125.30 days Which one of the following is included in a firm's market value but is excluded from the firm's accounting value/book value? a. Real estate investment b. Equipment owned by the firm c. An item held by the firm for future sale d. The quality of management team