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Finance Practice Test

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Question;1. Recreational Supplies Co. has net sales of $9,610,555, an ROE of 19.33 percent, and a total asset turnoverof 2.84 times. If the firm has a debt?to?equity ratio of 0.89, what is the company?s net income? (Roundanswer to 2 decimal places, e.g. 12.25.)a. The company?s net income is:2. Given the following information about Elkridge Sporting Goods, Inc., construct a balance sheet for June 30,2011. On that date the firm had cash and marketable securities of $25,135, accounts receivables of $43,758,inventory of $171,921, net fixed assets of $429,904, and other assets of $13,125. It had accounts payables of$67,855, notes payables of $36,454, long?term debt of $253,140, and common stock of $150,000. How muchretained earnings did the firm have?3. The Oakland Mills Company has disclosed the following financial information in its annual reports for theperiod ending March 31, 2011: sales of $1,362,788, costs of goods sold of $685,852, depreciation expensesof $175,000, and interest expenses of $89,575. Assume that the firm has a tax rate of 35 percent. Computethe cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.)4. Sosa Corporation recently reported an EBITDA of $30.4 million and net income of $9.7 million. Thecompany had $6.8 million in interest expense, and its corporate tax rate was 35 percent. What was itsdepreciation and amortization expense?5. Nimitz Rental Company had depreciation expenses of $112,754, interest expenses of $62,123, and an EBITof $1,100,498 for the year ended June 30, 2011. What are the times interest?earned and cash coverageratios for this company? (Round answers to 1 decimal place, e.g.12.5.)6. Cisco Systems has total assets of $3.128 billion, total debt of $1.579 billion, and net sales of $2.882 billion.Its net profit margin for the year is 21 percent, while the operating profit margin is 23 percent. What areCisco?s net income, EBIT ROA, ROA, and ROE? (Round net income to 3 decimal places, e.g. 25.335.Round EBIT ROA, ROA and ROE to 1 decimal place, e.g.12.2%.)7. Grossman Enterprises has an equity multiplier of 2.70 times, total assets of $2,220,996, an ROE of 15.10percent, and a total assets turnover of 2.77 times. Calculate the firm?s sales and ROA. (Round sales tonearest dollar, e.g. 125 and ROA to 2 decimal places, e.g. 15.25%.)8. Recreational Supplies Co. has net sales of $9,610,555, an ROE of 19.33 percent, and a total asset turnoverof 2.84 times. If the firm has a debt?to?equity ratio of 0.89, what is the company?s net income? (Roundanswer to 2 decimal places, e.g. 12.25.)

 

Paper#49915 | Written in 18-Jul-2015

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