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can i please have the answers for this questions thank you Multiple Choice Question 29 Anyone analyzing a firm's financial statements should: a. all of

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can i please have the answers for this questions thank you

image text in transcribed Multiple Choice Question 29 Anyone analyzing a firm's financial statements should: a. all of these. b. use audited financial statements. c. perform a benchmark analysis. d. do a trend analysis. Answer: Practice Question 3 Stockholders are primarily concerned about a. the value of their stock. b. repayment of the money they loaned to the firm. c. receipt of interest payments they are entitled to. d. taking decisions on day-to-day activities of the business. Answer: Post-Lecture Question 1 A commercial bank wants to determine if an applicant for a loan is likely to be able to pay its bills as they come due. Which type of ratio is most appropriate? a. Profitability ratio b. Liquidity ratio c. Efficiency ratio d. Leverage ratio Answer: Post-Lecture Question 2 Which of the following is true of financial statement analysis? a. It is used by creditors to find the value of their stock. b. It involves the use of financial ratios to analyze a firm's performance. c. Creditors' perspective of financial statement analysis is similar to that of stockholders. d. It can be used for evaluating private companies, not public companies. Answer: Practice Question 7 A common-size income statement is useful for a. comparing cash from investing activities of different firms. b. comparing total assets and total liabilities of different firms. c. comparing financial performance of different firms. d. comparing working capital position of firms in different industries. Answer: Post-Lecture Question 3 The most useful way to prepare a common size income statement is to express each account item as a percentage of a. net sales. b. total equity. c. total assets. d. total debt. Answer: Problem 4.2 Flying Penguins Corp. has total current assets of $9,550,000, current liabilities of $5,714,000, and a quick ratio of 0.94. How much inventory does it have? (Round answer to the nearest whole dollar, e.g. 5,675.) Inventory $ Problem 4.4 Bummel and Strand Corp. has a gross profit margin of 28.62 percent, sales of $50,221,000, and inventory of $12,631,000. What is its inventory turnover ratio? (Round answer to 2 decimal places, e.g. 15.25.) Inventory turnover ratio times Problem 4.7 Norton Company has a debt-to-equity ratio of 2.39, ROA of 14.50 percent, and total equity of $1,148,000. What are the company's equity multiplier, debt ratio, and ROE? (Round answers to 2 decimal places, e.g. 12.55 or 12.55%.) Equity multiplier Debt ratio ROE % Problem 4.13 Chisel Corporation has 2.733 million shares outstanding at a price per share of $3.27. If the debt-to-equity ratio is 1.22 and total book value of debt equals $12,487,000, what is the market-to-book ratio for Chisel Corporation? (Round answer to 2 decimal places, e.g. 12.25.) Market-to-book ratio Problem 4.19 Conseco, Inc., has a debt ratio of 0.64. What are the company's debt-to-equity ratio and equity multiplier? (Round your answers to 2 decimal places, e.g.12.25.) The company's debt-to-equity ratio is . Problem 4.21 and the equity multiplier is Procter & Gamble reported the following information for its fiscal year end: On net sales of $55.463 billion, the company earned net income after taxes of $7.038 billion. It had a cost of goods sold of $22.890 billion and EBIT of $6.887 billion. What are the company's gross profit margin, operating profit margin, and net profit margin? (Round answers to 1 decimal place, e.g.12.5%.) Gross profit margin % Operating profit margin % Net profit margin % Problem 4.23 Xtreme Sports Innovations has disclosed the following information: EBIT = $24,000,000 Net income = $11,870,000 Net sales = $74,430,000 Total debt = $22,350,000 Total assets = $80,230,000 Compute the following ratios for this firm using the DuPont identity: debt-to-equity ratio, EBIT ROA, ROA, and ROE. (Round answers to 2 decimal places, e.g.12.55 or 12.55%.) Debt-to-equity ratio EBIT ROA % ROA % ROE % Sample Test Problem 4.5 National City Bank has 646,749,670 shares of common stock outstanding that are currently selling for $38.05 per share on the New York Stock Exchange. If National City's net income was $2,768,955,000 in the year that just ended, what was its earnings per share and what is its current price-earnings ratio? (Round answers to 2 decimal places, e.g. 15.25.) Earnings per share $ Price-earnings ratio times If the typical price-earnings ratio for a bank is currently 14.1, what does the price-earnings ratio for National City tell you about its prospects? The market is prospects of the typical bank. optimistic about National City's prospects than it is about the Post-Lecture Question 9 Jet, Inc., has net sales of $326,352, accounts receivables of $98,765, and inventory of $72,989. What is the firm's accounts receivables turnover? a. 0.3 times b. 4.4 times c. 3.3 times d. 0.2 times Answer: Problem 4.8 The Rangoon Timber Company has the following ratios: Net sales/Total assets = 2.48; ROA 9.95%; ROE 13.88%. What are Rangoon's profit margin and debt ratios? (Round answers to 2 decimal places, e.g. 12.55 or 12.55%.) Profit margin % Debt ratio Problem 4.9 Lemmon Enterprises has a total asset turnover of 2.2 and a net profit margin of 7.0%. If its equity multiplier is 1.30, what is the ROE for Lemmon Enterprises? (Round answer to 2 decimal places, e.g. 12.25%.) ROE % Problem 4.27 Grossman Enterprises has an equity multiplier of 2.13 times, total assets of $2,293,000, an ROE of 15.10 percent, and a total asset turnover ratio of 2.66 times. Calculate the firm's sales and ROA. (Round sales to nearest whole dollar, e.g. 125 and ROA to 2 decimal places, e.g. 15.25%.) Grossman's sales are $ and its ROA is %. Sample Test Problem 4.3 Greenfern Corporation recently filed the following financial statements with the SEC. Greenfern Corporation Income Statement for the Fiscal Year Ended July 31, 2014 Net sales $57,124 40,632 Cost of products sold Gross profit $16,492 Selling, general, and administrative expenses 7,280 827 Depreciation Operating income (loss) $8,385 506 Interest expense Earnings (loss) before income taxes $7,879 Income taxes 2,758 $5,121 Net earnings (loss) Greenfern Corporation Balance Sheet as of July 31, 2014 Assets Cash and marketable securities Liabilities and Stockholders' Equity $5,471 Accounts payable $3,827 Accounts receivable 6,118 Accrued and other liabilities 3,398 Inventory 6,940 Taxes payable 2,893 Debt due within one year 6,467 Deferred income taxes Prepaid expenses & other receivables Total current assets 685 2,186 Total current liabilities $16,585 $21,400 Property, plant, and equipment, at cost 48,724 Long-term debt Less: Accumulated depreciation 17,313 Deferred income taxes 5,384 Other non-current liabilities 4,374 Net property, plant, and equipment Net goodwill and other intangible assets $31,411 12,690 Total liabilities Common stock Retained earnings Total stockholders' equity Total assets $65,501 Total liabilities and stockholders' equity 18,940 $45,283 2,860 17,358 20,218 $65,501 Use the DuPont identity to calculate the return on equity (ROE). In the process, calculate the following ratios: net profit margin, total asset turnover, equity multiplier, EBIT return on assets (EROA), and return on assets. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % Total asset turnover Equity multiplier EBIT return on assets Return on assets % % Return on equity % Multiple Choice Question 74 The DuPont equation shows that a firm's (return on equity) ROE is determined by three factors: a. operating profit margin, return on assets (ROA), and the total assets turnover. b. net profit margin, total asset turnover, the return on assets (ROA). c. return on assets (ROA), total assets turnover, and the equity multiplier. d. net profit margin, total asset turnover, and the equity multiplier. Answer: Post-Lecture Question 13 Which of the following is an appropriate benchmark in ratio analysis? a. The average collection period for a peer group of firms b. The average dividend payment for a peer group of firms c. The average market share for the industry d. The average stock price for industry

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