1. Your answer should show at least the first 3 rounded non-zero digits followed by zeros.

A)For Example:If the answer is 278,915, the first 3 rounded non-zero digits is 279 and an answer of 279,000 is acceptable. An answer of 278,915 is also acceptable.

B)Another Example: Suppose the answer is 0.08297, then an answer of 0.083 is acceptable.0.0830 and 0.08297 are also acceptable.

2. Do not use currency signs. Suppose the answer is $40.42, then you should answer 40.4 or 40.42.

3.Do not use (...) to show negative quantities. If the answer is 0.5192, then do not answer (0.519), rather answer 0.519 or 0.5192.

4. When you have a question that may be answered as a percentage, answer it instead as a decimal. For example, if the answer for a rate of return is 10.5%, then enter the answer as 0.105 instead of 10.5 or 10.5%.Basically answer the question as the actual number instead of answering it as a percentage.

5. Please note that in LEO the questions for the homework as well as the exams have variables in them. These variables change each time someone looks at the problem. That means if you print out the problem and close out the question, the next time you look at that problem, the numbers will have changed.You need to work on that problem when the question is opened in order to have the same numbers.

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1) Soaring Eagles Corp. has total current assets

of $11,052,000, current liabilities of $5,090,000 and a quick ratio of 0.83.

What is its level of inventory?

2) Boulder Mountain Ski Company has total assets of $403,800,000 and a debt ratio of0.25. Calculate the companys debt-to-equity ratio.

3) The Timber Ridge Company has the following relationships:

Sales/Total assets = 2.38;ROA = 0.1090

Whatis Timber Ridges net profit margin?

4) Sawaya Company had depreciation and amortization expensesof $522,311, interest expenses of $114,077, and an EBITDA of $1,521,087 forthe year ended June 30, 2010. What is the Times Interest Earned for thiscompany?

a) 13.3 times

b) 8.8 times

c) .6 times

d)None of the above

5) Archware Systems has total assets of $35.594

billion, total debt of $9.678 billion, and net sales of $22.520 billion. Their

net profit margin for the year was 0.20, while the operating profit

margin was 30 percent. Whatis Archwares net income? (Answer needs to be stated in billions. For example: 2.83)

6) Which one of the following statements isNOTtrue?

a)DSO measures in days, the time the firm takes to convert its receivables intocash.

b)One ratio that measures the efficiency of a firm's collection policy is days'sales outstanding.

c)The accounts receivables turnover ratio measures how quickly the firm collectson its credit sales.

d)The more days that it takes the firm to collect on its receivables, the moreefficient the firm is.

7) Blue Air Inc., has net sales of $744,000 andaccounts receivables of $168,000. What are the firm's accounts receivablesturnover?

8) JP Vineyards has sales of $851,000, a grossprofit margin of 0.386, and inventory of $172,000. What is thecompany's inventory turnover ratio?

Your Answer: