23.What is the quick ratio for 2007?

a. .58

b. .63

c. 1.58

d. 1.74

e. 2.47

24. What is the capital intensity ratio in 2007? HINT: Inverse of TAT.

a. .84

b. .91

c. .97

d. 1.09

e. 1.19

25.What is the TIE (times interest earned) ratio for 2007?

a. 8.74

b. 8.80

c. 11.04

d. 11.82

e. 12.31

26. What is the return on equity in 2007?

a. 17.82%

b. 18.47%

c. 27.70%

d. 29.96%

e. 35.63%

27. What is the equity multiplier (FLM )for 2007?

a. 1.67

b. 1.72

c. 1.91

d. 1.94

e. 2.19

$318,400 229,800 9,100 Cavern Gear, Inc. 2007 Income Statement Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable income Less: Taxes Net income 79,500 7,200 $ 72,300 25,300 $ 47,000 Cavern Gear, Inc. 2006 and 2007 Balance Sheets 2006 2007 $ 18,700 $ 24,200 Accounts Payable 2006 2007 $ 88,000 $67,900 16,400 14,900 Long-term debt 94,800 89,600 128,500 Cash Accounts rec. Inventory Sub-total Net fixed assets Total 154,200 $189,300 Common stock* Retained earnings 57,500 33,500 60,000 71,900 $167,600 84,500 121,800 $273,800 $289,400 Total $273,800 $289,400 * The par value of the common stock is $1 per share. Use end of year figures and a 365-day year