1. Ash, Inc. has net working capital of $10,600, long-term debt of $10,400, total debt of $15,200, and owners' equity of $38,900. What is the value of its net fixed assets?

   		$32,700
   		$38,700
   		$15,400
   		$40,610

2. Oak, Inc. has $16,000 in total assets, depreciation of $3,230, and interest of $1,900. The total asset turnover rate is 1.8. Earnings before interest and taxes are equal to 30 percent of sales. What is the cash coverage ratio?

   		5.45
   		8.51
   		6.25
   		7.54

3. Thyme, Inc. has total assets of $72,000, a debt-equity ratio of 0.8, and net income of $7,700. What is the return on equity?

   		24.14 percent
   		22.56 percent
   		27.78 percent
   		19.25 percent

4. Poke, Inc. has sales of $682,100. Earnings before interest and taxes is equal to 35 percent of sales. For the period, the firm paid $26,535 in interest. The tax rate is 21 percent. What is the profit margin?

   		24.58 percent
   		20.89 percent
   		13.39 percent
   		15.91 percent

5. Rice, Inc. had sales of $93,500, a profit margin of 6 percent, and dividends of $3,250. What is the plowback ratio?

   		42 percent
   		62 percent
   		51 percent
   		58 percent

6. A firm has earnings before interest and taxes of $77,960 with a net income of $18,580. The taxes amounted to $21,310 for the year. During the year, the firm paid out $65,000 to pay off existing debt and then later borrowed an additional $70,000. What is the amount of the cash flow to creditors?

   		-$38,070
   		$33,070
   		$38,070
   		-$33,070

7. The balance sheet of a firm shows long-term debt of $235,900 as of last year. Long-term debt is $264,600 as of today, which is the end of the current year. What is the amount of the net new borrowing for the current year?

   		-$28,700
   		$18,700
   		-$18,700
   		$28,700

8. A decrease in net working capital for the period:

   		indicates a firm has sold some of its long-term assets.
   		is caused by a firm purchasing additional fixed assets.
   		decreases the cash flow from assets.
   		is a cash inflow for the firm.

9. Zebrawood, Inc. has a book value per share of $5.70, earnings per share of $1.68, and a price-earnings ratio of 22. What is the market-to-book ratio?

   		8.18
   		10.39
   		6.48
   		4.22

10. All else equal, which of the following will decrease net working capital? I. decrease in accounts receivable II. increase in inventory III. decrease in cash IV. increase in accounts payable

    		I and III only
    		I, III, and IV only
    		II and IV only
    		I and II only

11. The internal growth rate is best described as the _________ growth rate achievable ___________.

    		minimum; if a firm retains all of its net income
    		maximum; without any additional external equity financing
    		maximum; without any additional external financing of any type
    		minimum; if a firm maintains a constant debt-equity ratio

12. The sustainable growth rate is best described as the _______ growth rate achievable _________.

    		minimum; if a firm ceases all dividend payments
    		maximum; if a firm maintains a constant debt-equity ratio and does not issue any additional equity securities
    		minimum; if a firm maintains a constant equity multiplier
    		maximum; without external financing of any kind