Exam 14: Capital Budgeting Decisions

Hagle Corporation has provided the following financial data: Required: a.What is the company's accounts receivable turnover for Year 2?` b.What is the company's average collection period (age of receivables)for Year 2? c.What is the company's inventory turnover for Year 2? d.What is the company's average sale period (turnover in days)for Year 2? e.What is the company's operating cycle for Year 2? f.What is the company's total asset turnover for Year 2?

Hernande Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:

Buying inventory in large lots to take advantage of quantity discounts can be responsible for a high inventory turnover ratio.

Sand Company has an acid-test ratio of 0.8.Which of the following actions would improve the acid-test ratio?

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: The times interest earned for Year 2 is closest to:

A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400.Dividends on common stock during Year 2 totaled $6,400.The market price of common stock at the end of Year 2 was $3.08 per share. The company's price-earnings ratio for Year 2 is closest to:

Wowk Corporation has provided the following financial data: Required: a.What is the company's working capital? b.What is the company's current ratio? c.What is the company's acid-test (quick)ratio?

Deflorio Corporation's inventory at the end of Year 2 was $156,000 and its inventory at the end of Year 1 was $140,000.The company's total assets at the end of Year 2 were $1,416,000 and its total assets at the end of Year 1 were $1,390,000.Sales amounted to $1,320,000 in Year 2.The company's total asset turnover for Year 2 is closest to:

Laverde Corporation has provided the following data: The company's total asset turnover for Year 2 is closest to:

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000.The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on total assets for Year 2 is closest to:

Financial statements for Maraby Corporation appear below: Maraby Corporation's average collection period for Year 2 was closest to:

Braverman Corporation's net income last year was $75,000 and its interest expense was $10,000.Total assets at the beginning of the year were $650,000 and total assets at the end of the year were $610,000.The corporation's income tax rate was 30%.The corporation's return on total assets for the year was closest to:

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400.The market price of common stock at the end of Year 2 was $5.89 per share. The company's price-earnings ratio for Year 2 is closest to:

Karma Corporation has total assets of $190,000 and total liabilities of $90,000.The corporation's debt-to-equity ratio is closest to:

Moselle Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,200.The market price of common stock at the end of Year 2 was $9.72 per share. Required: a.What is the company's earnings per share for Year 2? b.What is the company's price-earnings ratio for Year 2? c.What is the company's dividend payout ratio for Year 2? d.What is the company's dividend yield ratio for Year 2? e.What is the company's book value per share at the end of Year 2?

The formula for the net profit margin percentage is: Net profit margin percentage = Net income ÷ Sales.

Calin Corporation has total current assets of $615,000,total current liabilities of $230,000,total stockholders' equity of $1,183,000,total net plant and equipment of $958,000,total assets of $1,573,000,and total liabilities of $390,000.The company's working capital is:

Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $10.88 per share. The company's equity multiplier at the end of Year 2 is closest to: