Exam 3: Analyzing Financial Statements

What is the debt ratio for a firm with an equity multiplier of 3.5?

Liquidity Ratios The top part of Rammy's Inc.'s 2013 balance sheet is listed as follows (in millions of dollars). What are Rammy's Inc.'s current ratio,quick ratio,and cash ratio for 2013?

A strong liquidity position means that:

Debt Management Ratios Paige's Purses,Inc.reported a debt to equity ratio of 2.4 times at the end of 2013.If the firm's total assets at year-end are $27 million,how much of their assets is financed with equity?

Liquidity and Asset Management Ratios Oasis Products,Inc.has current liabilities = $10 million,current ratio = 1.5 times,inventory turnover ratio = 12 times,average collection period = 20 days,and sales = $100 million.What is the value of their cash and marketable securities?

Internal Growth Rate Leash N Collar reported a profit margin of 8 percent,total asset turnover ratio of 1.5 times,debt-to-equity ratio of 0.75 times,net income of $400,000,and dividends paid to common stockholders of $200,000.The firm has no preferred stock outstanding.What is Leash N Collar's internal growth rate?

Which of the following is unlikely to have a high capital intensity ratio?

To interpret financial ratios,managers,analysts,and investors use which of the following type of benchmarks?

DuPont Analysis Last year Café Creations,Inc.had an ROA of 25 percent,a profit margin of 12 percent,and sales of $4 million.What is Café Creations' total assets?

DuPont Analysis If Epic,Inc.has an ROE = 25 percent,equity multiplier = 4,a profit margin of 12 percent,what is the total asset turnover ratio?

Internal Growth Rate Last year Rain Repel Corporation had an ROA of 5 percent and a dividend payout ratio of 90 percent.What is the internal growth rate?

Common-size financial statements:

DuPont Analysis Last year,DJ's Soda Fountains,Inc.reported an ROE = 27 percent.The firm's debt ratio was 50 percent,sales were $9 million,and the capital intensity ratio was 1.5 times.What is the net income for DJ's last year?

Asset Management and Profitability Ratios You have the following information on Zip's Diner,Inc.: sales to working capital = 8 times,profit margin = 5 percent,net income available to common stockholders = $20 million,and current liabilities = $4 million.What is the firm's balance of current assets?

Market Value Ratios Lab R Doors' year-end price on its common stock is $40.The firm has a profit margin of 10 percent,total assets of $30 million,a total asset turnover ratio of 2,no preferred stock,and there are 4 million shares of common stock outstanding.What is the PE ratio for Lab R Doors?