11. The Widget Co. purchased new machinery three years ago for $4 million. The machinery can be sold to the Roman Co. today for $2 million. The Widget Co.'s current balance sheet shows net fixed assets of $2,500,000, current liabilities of $1,375,000, and net working capital of $725,000. If all the current assets were liquidated today, the company would receive $1.9 million in cash. The book value of the Widget Co.'s assets today is and the market value of those assets is A. $4,600,000; $3,900,000 B. $4,600,000; $3,125,000 C. $5,000,000; $3,125,000 D. $5,000,000; $3,900,000 E. $6,500,000; $3,900,000 12. Which one of the following is a source of cash? A. increase in accounts receivable B. decrease in notes payable C. decrease in common stock D. increase in accounts payable E. increase in inventory 13. If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be which one of the following? A. 0.0 . 0.5 . 1.0 D. 1.5 E. 2.0 14. The Purple Martin has annual sales of $687,400, total debt of $210,000, total equity of $365,000, and a profit margin of 4.80 percent. What is the return on assets? A. 5.74 percent B. 6.48 percent C. 7.02 percent D. 7.78 percent E. 9.79 percent 15. A firm has a debt-equity ratio of 57 percent, a total asset turnover of 1.12, and a profit margin of 4.9 percent. The total equity is $511,640. What is the amount of the net income? A. $28,079 B. $35,143 C. $44,084 D. $47,601 E. $52,418