59.

Flos Flowers has accounts receivable of $4,511, inventory of $1,810, sales of $138,609, and cost of goods sold of $64,003. How many days does it take the firm to sell its inventory and collect the payment on the sale assuming that all sales are on credit?

A.	11.88 days
B.	22.20 days
C.	16.23 days
D.	14.50 days
E.	18.67 days

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Basic Learning Objective: 03-02 How to compute and, more importantly, interpret some common ratios. Section: 3.3 Ratio Analysis Topic: Asset management ratios

60.

A firm has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars worth of sales are generated from every $1 in total assets?

A.	$1.08
B.	$1.14
C.	$1.19
D.	$1.26
E.	$1.30

62.

Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt ratio of 64 percent. What is the return on equity?

A.	13.09 percent
B.	16.04 percent
C.	21.03 percent
D.	18.56 percent
E.	19.64 percent

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Intermediate Learning Objective: 03-02 How to compute and, more importantly, interpret some common ratios. Section: 3.3 Ratio Analysis Topic: Profitability ratios

63.

Bernices has $823,000 in sales. The profit margin is 3.9 percent and the firm has 7,500 shares of stock outstanding. The market price per share is $15. What is the price-earnings ratio?

A.	3.51
B.	3.98
C.	4.42
D.	3.15
E.	4.27

64.

Hungry Lunch has net income of $68,710, a price-earnings ratio of 13.7, and earnings per share of $.24. How many shares of stock are outstanding?

A.	13,558
B.	20,897
C.	185,745
D.	171,000
E.	286,292

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Basic Learning Objective: 03-02 How to compute and, more importantly, interpret some common ratios. Section: 3.3 Ratio Analysis Topic: Market value ratios

65.

A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $126,400, a price-earnings ratio of 21.3, and a book value per share of $7.92. What is the market-to-book ratio?

A.	2.12
B.	1.84
C.	1.39
D.	2.45
E.	2.69

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Intermediate Learning Objective: 03-02 How to compute and, more importantly, interpret some common ratios. Section: 3.3 Ratio Analysis Topic: Market value ratios

66.

Oscar's Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and an equity multiplier of 1.49. What is the return on equity?

A.	17.14 percent
B.	18.63 percent
C.	19.67 percent
D.	21.69 percent
E.	22.30 percent

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Basic Learning Objective: 03-03 The determinants of a firms profitability. Section: 3.4 The DuPont Identity Topic: DuPont identity

67.

Taylor's Men's Wear has a debt-equity ratio of 56 percent, sales of $829,000, net income of $38,300, and total debt of $206,300. What is the return on equity?

A.	3.32 percent
B.	10.40 percent
C.	5.74 percent
D.	18.57 percent
E.	14.16 percent

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Basic Learning Objective: 03-02 How to compute and, more importantly, interpret some common ratios. Section: 3.3 Ratio Analysis

68.

A firm has a debt-equity ratio of 62 percent, a total asset turnover of 1.24, and a profit margin of 5.1 percent. The total equity is $489,600. What is the amount of the net income?

A.	$28,079
B.	$19,197
C.	$50,159
D.	$40,451
E.	$52,418

Please show explanation for all solutions