11. Naronath & Co. has a DSO of 30 days, and its annual sales are $6,500,000. What is its accounts receivable balance? Assume that it uses 365-day year. *

5 points

a) $17,808

b) $216,666

c) $534,247

d) $593,607

e) None of the above

12. ABC Co. has ROE of 20% and ROA of 10%. The equity multiplier for the company is: *

5 points

a) 1

b) 2

c) 3

d) 4

e) None of the above

13. ABC Co. has net income of $15,000 and sales of $150,000. The net profit margin ratio for the company is: *

8 points

a) 10%

b) 15%

c) 5%

d) 8.5%

e) None of the above

14. LSP Co. has current assets of $20,000 and current liabilities of $10,000. The current ratio for the company is: *

4 points

a) 1

b) 2

c) 3

d) 4

e) None of the above

15. You deposit $8,000 in a bank account today. You make another deposit of $14,000 into the account in year one and you make a third deposit of $10,000 in year two. The bank pays interest at 8 percent compounded annually. How much will you have in your account at the end of year 3? *

2 points

a) $37,207

b) $35,207

c) $39,207

d) $40,502

e) None of the above