Exam 3: Financial Statements and Cash Flow

A retail store has days' sales in inventory of 68 days and an average collection period of 32 days.The firm pays its suppliers in an average of 42 days,on average.Taken together,what do these average values imply about the firm's operations and its cash flows?

The equity multiplier measures:

Which one of the following statements is correct concerning ratio analysis?

Riverton Stores is all-equity financed and has net sales of $217,800,taxable income of $32,600,a return on assets of 11.5 percent,a tax rate of 21 percent,and total debt of $63,700.What are the values for the three components of the DuPont identity?

The total asset turnover ratio measures the amount of:

The higher the inventory turnover,the:

Samuelson's has sales of $317,000,a profit margin of 8.6 percent,an equity multiplier of 1.8,and total debt of $144,400.What is the return on equity?

Which is a more meaningful measure of profitability for a firm,return on assets or return on equity? Why?

If a firm decreases its operating costs,all else constant,then the:

Which account is least apt to vary directly with sales?

Rosita's Resources paid $11,310 in interest and $16,500 in dividends last year.The times interest earned ratio is 2.9,the depreciation expense is $7,900,and the tax rate is 21 percent.What is the value of the cash coverage ratio?

Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as ________ ratios.

Two Sisters Dresses has net working capital of $43,800,net fixed assets of $232,400,net income of $43,900,and current liabilities of $51,300.The tax rate is 21 percent and the profit margin is 9.3 percent.How many dollars of sales are generated from every $1 in total assets?

Turner's Inc.has a price-earnings ratio of 16.Alfred's Co.has a price-earnings ratio of 19.Thus,you can state with certainty that one share of stock in Alfred's:

Which statement expresses all relative account values as a percentage of total assets?

Preston Woods has 17,500 shares of stock outstanding along with $408,000 of interest-bearing debt.The market and book values of the debt are the same.The firm has sales of $697,000 and a profit margin of 6.8 percent.The tax rate is 21 percent,the debt-equity ratio is 40 percent,and the price-earnings ratio is 11.8.The firm has $130,000 of current assets of which $41,200 is cash.What is the enterprise value multiple?

Discount Mart has $876,400 in sales with a profit margin of 3.8 percent.There are 32,500 shares of stock outstanding at a market price per share of $21.60.What is the price-earnings ratio?

DL Motors has sales of $22,400,net income of $3,600,net fixed assets of $18,700,inventory of $2,800,and total current assets of $6,300.What is the common-size statement value of inventory?

Marcie's Mercantile wants to maintain its current dividend policy,which is a payout ratio of 35 percent.The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio.Given these requirements,the maximum rate at which Marcie's can grow is equal to:

The Blue Giant has a profit margin of 6.2 percent and a dividend payout ratio of 40 percent.The capital intensity is 1.08 and the debt-equity ratio is .54.What is the sustainable rate of growth?