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QUESTION 1 Use the following financial statements to answer Questions 1 16. Kramerica Industries (KI) 2016 Income Statement Sales $678,240 Cost of goods sold 328,830

QUESTION 1

Use the following financial statements to answer Questions 1 16.

Kramerica Industries (KI)

2016 Income Statement

Sales

$678,240

Cost of goods sold

328,830

Selling & administrative expenses

149,680

Depreciation

65,491

Earnings before interest and taxes

Interest expense

23,155

Earnings before taxes

Taxes

38,879

Net income

Dividends

Additions to retained earnings

Kramerica Industries (KI)

2015 and 2016 Balance Sheets

2015

2016

2015

2016

Cash

$15,979

$17,167

Accounts payable

$28,875

$37,692

Accounts receivable

16,553

19,318

Long-term debt

164,200

187,400

Inventory

22,798

27,305

Common stock

45,000

45,000

Net fixed assets

413,311

494,573

Retained earnings

230,566

288,271

Total assets

Total liabilities and equity

KI's cash flow from assets in 2016 is ___.

a.
$29,300

b.
$7,241

c.
$47,600

d.
$14,455

2 points

QUESTION 2

KI's cash flow to stockholders in 2016 is _.

a.
$19,500

b.
-$29,300

c.
$14,500

d.
$31,000

2 points

QUESTION 3

KI's cash flow to creditors in 2016 is _.

a.
$23,900

b.
-$45

c.
$3,010

d.
$16,600

2 points

QUESTION 4

KI's internal growth rate in 2016 is _.

a.
5.19%

b.
1.88%

c.
7.34%

d.
11.53%

2 points

QUESTION 5

KI's current ratio in 2016 is _.

a.
1.99

b.
1.69

c.
2.85

d.
2.55

2 points

QUESTION 6

KI's profit margin in 2016 is _.

a.
10.65%

b.
13.82%

c.
6.66%

d.
8.94%

2 points

QUESTION 7

KI's equity multiplier in 2016 is _.

a.
1.68

b.
2.91

c.
2.02

d.
3.45

2 points

QUESTION 8

If KI has 100,000 shares outstanding and the stock is sold for $28.25 per share at the end of the year, its PE ratio is _.

a.
39.12

b.
86.01

c.
50.86

d.
103.65

2 points

QUESTION 9

KI's quick ratio in 2016 is _.

a.
0.78

b.
0.97

c.
0.60

d.
1.32

2 points

QUESTION 10

KI's total asset turnover in 2016 is _.

a.
1.15

b.
1.21

c.
0.90

d.
0.82

2 points

QUESTION 11

If KI has 100,000 shares outstanding and the stock is sold for $28.25 per share at the end of the year, its market-to-book ratio is _.

a.
8.48

b.
12.38

c.
10.43

d.
17.82

2 points

QUESTION 12

KI's sustainable growth rate in 2016 is _.

a.
20.94%

b.
4.26%

c.
3.87%

d.
16.85%

2 points

QUESTION 13

KI's total debt ratio in 2016 is _.

a.
50.45%

b.
32.98%

c.
40.31%

d.
55.07%

2 points

QUESTION 14

KI's times interest earned ratio in 2016 is _.

a.
9.43%

b.
5.80

c.
5.80%

d.
9.43

2 points

QUESTION 15

KI's operating cycle in 2016 is _.

a.
42.38 days

b.
53.85 days

c.
37.46 days

d.
24.99 days

2 points

QUESTION 16

KI's cash cycle in 2016 is ___.

a.
-4.59 days

b.
-21.69 days

c.
0.51 day

d.
36.94 days

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Previous Question Next Question

Kramerica Industries (KI)
2016 Income Statement
Sales	$678,240
Cost of goods sold	328,830
Selling & administrative expenses	149,680
Depreciation	65,491
Earnings before interest and taxes
Interest expense	23,155
Earnings before taxes
Taxes	38,879
Net income

Dividends
Additions to retained earnings

Kramerica Industries (KI)
2015 and 2016 Balance Sheets
	2015	2016		2015	2016
Cash	$15,979	$17,167	Accounts payable	$28,875	$37,692
Accounts receivable	16,553	19,318	Long-term debt	164,200	187,400
Inventory	22,798	27,305	Common stock	45,000	45,000
Net fixed assets	413,311	494,573	Retained earnings	230,566	288,271

Total assets			Total liabilities and equity