Degraffe Corporation $$ Practice Problems

Balance Sheet Income Statement

Assets:

Cash $$250,000$ Sales $$8,000,000$

Accounts receivable $450,000$ Cost of goods sold $4,000,000$

Inventory $500,000$ Operating expense $2,900,000$

Net fixed assets $2,100,000$ Interest expense $150,000$

Total assets $$3,300,000$ Income taxes $380,000$

Net income $$570,000$

Liabilities and owners' equity:

Accounts payable $$100,000$

Notes payable $450,000$

Long$-$term debt $1,050,000$

Owners' Equity $1,700,000$

Total liabilities and owner's

equity $$3,300,000$

$1)$ Based on the information from the Degraffe Corporation, the average collection period is

$\_\_\_\_\_\_\_\_\_\_\_\_.$ Note: $2$ decimal places

$2)$ Based on the information from the Degraffe Corporation, the return on assets is

$\_\_\_\_\_\_\_\_\_\_\_\_\_.$ Note: $2$ decimal places

$3)$ Based on the information from the Degraffe Corporation, the operating profit margin is

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$ Note: $2$ decimal places

$4)$ Based on the information from the Degraffe Corporation, the total asset turnover is

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$ Note: $2$ decimal places

$5)$ Based on the information from the Degraffe Corporation, the debt ratio is $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Note: $2$ decimal places

$6)$ Based on the information from the Degraffe Corporation, the return on equity is

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$ Note: $2$ decimal places

$7)$ Based on the information from the Degraffe Corporation, the times interest ea