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UIT Inc. has just reported sales of $278.5 million, cost of goods sold of $75 million, operating expense of $95 million, and interest expense of

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UIT Inc. has just reported sales of $278.5 million, cost of goods sold of $75 million, operating expense of $95 million, and interest expense of $20.1 million. If the tax rate is 35%, what is UIT's net income? $203.5 million $108.5 million $93.8 million $57.46 million none of the above Which of the following events INCREASES cash flows from operating activities? a decrease in cash of $350,000 an increase in inventories of $150,000 a decrease in accounts payable of $600,000 all of the above none of the above Consider the following ratios: 2.52 1.34 10.23 4.53 0.64 0.98 4.74 3.21 Industry 2011 2012 Liquidity: Current Ratio 3.22 2.72 Quick Ratio 2.97 2.52 Inventory Turnover 12.09 14.14 Accounts Receivable Turnover 1.76 2.00 Efficiency: Total Asset Turnover 1.03 Fixed Asset Turnover 4.63 Profitability: Gross Profit Margin 15.85% 26.03% 21.11% Operating Profit Margin 5.13% 15.06% 9.77% Net Margin 4.78% 7.46% 4.32% Return on Asset 0.03 0.07 0.04 Return on Equity 0.11 0.40 0.22 How many of the following statements are correct? The company is more aggressively financed than the industry norm. The company's current ratios are higher than the industry norm due to a struggle to collect cash from credit sales. The drop in the net margin of the firm may be due to a low-price competitor appearing in the industry. The firm's operation is not as cost efficient as the industry norm in 2012. 1 2 OOO 3 4 Which of the following is part of the return on equity? a. percent of sales that represent a company's earnings b. dollars of sales generated per dollar of assets c.level of leverage that a firm is taking d. dollars of net income generated per dollar of assets e all of the above Of.only a, b, and If all else is held constant, which of the following actions would decrease the DFN? decreasing the accounts receivable turnover increasing the payout ratio improving the net profit margin decreasing the inventory turnover

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