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5. SDJ, Inc., has net working capital of $1,570, current liabilities of $4,380; and inventory of $1,875. (a) What is the current ratio? (b) What

5. SDJ, Inc., has net working capital of $1,570, current liabilities of

$4,380; and inventory of $1,875.

(a) What is the current ratio?

(b) What is the quick ratio?

6. Country Boy, Inc., has sales of $24 million, total assets of

$18 million, and total debt of $7 million. Country Boy has a profit

margin is 8%.

(a) What is net income? (Please put your answers in $millions.

(For example rather than "$1,230,000", type "1.23" which will

display as "$1.23 mil.".)

(b) What is ROA?

(c) What is ROE?

7. Bettles Fried Chicken Co. has a debt-equity ratio of 0.80. Return on

assets is 9.2% and total equity is $520,000.

(a) What is the equity multiplier?

(b) What is the return on equity?

(c) What is the net income?

8. For each of the following,effects, determine how much cash went up

or down? (Put in a positive number if cash increased and a negative

number is cash decreased.)

(a) Inventory decreased by $400:

(b) Accounts payable decreased by $160:

(c) Notes payable increased by $580:

(d) Accounts receivable decreased by $210:

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