8. The Pounds R Us Company produces weight lifting equipment. It has a long-term debt ratio [LTD/LTR:Equity) of 65 and a current ratio of 1.2. Current liabilities are $800, sales are $4000, the profit margin is 7%, and ROE is 25%. What is the $ amount of current assets? A) $667 B) $960 C) $920 D) $800 9. The inventory turnover ratio is measured as: A) Inventory plus cost of goods sold. B) Cost of goods sold divided by inventory. C) Inventory times total sales. D) Inventory times cost of goods sold. E) Total sales minus inventory 10. A firm has a times interest earned ratio of 2.7 times. This means: A) The firm has sufficient EBIT to cover its interest expense 2.7 times. B) The interest expense of this firm exceeded earnings before taxes by 2.7 times. C) The firm generated enough cash to cover its interest expense 2.7 times. D) The firm earned $1.00 in EBIT for every $2.70 it paid out in interest. E) The net income of this firm is sufficient to cover its interest expense 2.7 times. 11. A firm has sales of $500, total assets of $300, and a debt/equity ratio of 2. If its retur on equity is 15%, what is its net income? A) S50.00 B) $ 7.50 C) $32.50 D) $22.50 E) $15.00 12. The process of accumulating interest on an investment over time to earn more interest is called: A) Compounding. B) Accumulation. C) Growth D) Aggregation 13. You have just made your first $5,000 contribution to your individual retirement account. Assuming you cam a 7% rate of return and make no additional contributions, what will your account be worth when you retire in 35 years? A) $17,250.00 B) S6,128.76 C) $53,382.90 D) $46,831.46 14. You just received 550,000 from a rich aunt. If you invest this at 6% compounded annually and never withdraw any funds from the account. When will the account reach one million dollars? A) 51.4 years