Quiz 2 (Chapter 2) Name FIN 3063 Perfect Score: 15 wu Systems has the following balance sheet. (5pts) $ 100 s 200 350 Cash Accounts receivable Inventory Current assets Net fixed assets Accounts payable 650 Accruals 550 Notes payable $1,300 Current liabilities 1,000 Long-term debt s 900 600 Common equity Retained eamings Total liab. & equity S2.300 Total assets A. Calculate the debt-to-asset ratio. (3pts) B. Explain the meaning of debt-to-asset above. (2pts) and $1,750 of depreciation. It had $9,000 of bonds 2. Brown Office Supplies recently reported $15,500 of sales, $8,250 of operating costs other than d outstanding that carry a 7.0% interest rate, and its federal- plus state income tax rate was 40%. How much was the firm's eamings before taxes (EBT)?(4 pts) Multiple Choice (1pt each) 1. Increasing interest expense will have what effect on A. Increase it. Earnings Before Interest and Taxes (EBIT)? B. Decrease it. D. There is not enough information to tell. It will have no effect. Earms Inc. had sales of $750,000, cost of goods sold of $200,000, selling and administrative expense ting profit of S150,000. What was the value of depreciation expense? A $150,000