218 and the tax rate was 40 percent. If HighTech has no debt, what were Its sales revenues in 2014? What was its 2014 net cash flow? Credit Card of America (CCA) has a current ra. tio of 3.5 and a quick ratio of 3.0. If its total current assets equal $73,500, what are CCA'S (a) current liabilities and (b) inventory? At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets. (a) If WFL's total assets turnover was 2.0, what were its sales revenues? (b) If Wil's return on assets was 6 percent, what were its net income and net profit margin? The balance sheet for Panoramic Open Pic- tures (POP) shows $300,000 in total assets and $200,000 in total liabilities. POP's return on as- sets (ROA) is 5 percent. Compute POP's (a) net income for the year and (b) its return on equity (ROE). POP has no preferred stock. Legacy Cleaning has a debt ratio equal to 40 percent, total assets equal to $750,000, return on assets (ROA) at 6 percent, and total assets turnover of 3.0. (a) If it has no preferred stock, what amount of common equity does Legacy have? (b) What is Legacy's net profit margin? At the end of the year. Water Works Interna- tional (WWI) had $10,000 in total assets. Its total assets turnover was 2.5, and its return on assets (ROA) was 4 percent. What were wWi's (a) sales revenues and (b) net profit margin? Last year, Delightful Desserts had a quick ratio of 1.8, a current ratio of 5.0, an inventory turn- over of 2 total current assets of $340,000, and cash and equivalents of 543,000. If the cost of goods sold equaled 80 percent of sales, what were Bailey's annual sales and DSO Duncan Boutique's total assets are $440,000, its return on assets (ROA) Is 8 percent, and its debt ratio is 20 percent. What are Duncan's (a) net income and (b) return on equity (ROE)? Horatio's Hot Dogs' current assets equal $260,000. The company's return on assets (ROA) is 4 percent, its net income is $140,000, its long- term debt equals $1,755,000, and 35 percent of its assets are financed with common equity. Horatio's has no preferred stock. Compute the company's current ratio. Fido's Dog Spa's financial statements show that its total assets equal $100,000, its return on as- sets (ROA) is 3 percent, and its return on equity (ROE) is 5 percent. (a) Compute the company's net income. (b) What portion of total assets is financed with debt? Fido's has no preferred stock. Sixty (60) percent of Extreme Well Drilling's as- sets are financed with common equity, which is the only type of equity financing the company has. Extreme's current ratio is 5.0, its total assets turnover is 4.0, current assets equal $150,000, and its sales equal $1,800,000. What amount of Extreme's total liabilities is long term, and what amount is short term (current assets)? North/South Airlines generated the following information from its financial statements. @ PIE ratio equals 15.0, (2) common stock market price per share is $30. (3) fixed assets turnover equals 80, (4) current ratio equals 5.0., (5) current li- abilities equal $300,000, (6) net profit margin equals 4 percent, and (7) 60,000 shares of com- mon stock are outstanding What are North/ South's (a) return on assets (ROA) and (b) total assets turnover? 2-10 21 2-20
