Question 1

A Waterloo firm with net income of $500,000 pays 48% of net income out in dividends. If the firm has 150,000 shares of common stock outstanding, what is the dividend paid per share of stock?
A) $0.30
B) $1.44
C) $1.60
D) $1.73
E) $3.33

Accepted Answer

The firm pays 48% of $500,000 in dividends, which is $240,000. Dividing $240,000 by 150,000 shares gives a dividend of $1.60 per share.

Question 2

The following statement of financial position and statement of comprehensive income should be used.   How many dollars of sales are being generated by every $1 that Woodburn has in total assets($ in thousands)? (Use 2018 assets)
A) $1.01
B) $1.07
C) $1.09
D) $1.12
E) $1.16

Accepted Answer

The answer of The following statement of financial position and...

Question 3

Calculate total asset value given the following information: ROA = 5%; Total equity = $600,000 and ROE = 8%.
A) $960,000
B) $1,100,000
C) $1,200,000
D) $1,300,000
E) $1,400,000

Accepted Answer

Total asset value can be calculated using the formula for Return on Assets (ROA) = Net Income / Total Assets. Similarly, Return on Equity (ROE) = Net Income / Total Equity. Given ROE = 8% and Total Equity = $600,000, we can find Net Income = 0.08 * $600,000 = $48,000. Using the ROA = 5%, we rearrange the formula to find Total Assets = Net Income / ROA = $48,000 / 0.05 = $960,000.

Question 4

A firm has a total debt ratio of .47. This means that that firm has 47 cents in debt for every:
A) $1.00 in equity.
B) $1.00 in total sales.
C) $1.00 in current assets.
D) $0.53 in equity.
E) $0.53 in total assets.

Accepted Answer

The total debt ratio is calculated as total debt divided by total assets. A ratio of .47 means that for every $1 in total assets, the firm has $0.47 in debt, leaving $0.53 in equity for every $1 in total assets.

Question 5

Calculate sales given the following data. Total fixed assets $400,000; long-term liabilities $155,000; total liabilities $280,000; total shareholders' equity $320,000; net working capital turnover 20.
A) $1,500,000
B) $1,700,000
C) $1,900,000
D) $2,100,000
E) $2,250,000

Accepted Answer

The answer of Calculate sales given the following data. Total...

Question 6

A Kingston firm has net working capital of $2,580, net fixed assets of $13,120, sales of $22,580, and current liabilities of $1,610. How many dollars' worth of sales are generated from every $1 in total assets?
A) $1.27
B) $1.30
C) $1.67
D) $1.72
E) $1.75

Accepted Answer

The answer of A Kingston firm has net working capital...

Question 7

Atlasta Limo Corp. has an average collection period of 36.5 days. Sales are $300,001. What is the average investment in receivables?
A) $4,441
B) $8,219
C) $10,000
D) $30,000
E) $36,500

Accepted Answer

The answer of Atlasta Limo Corp. has an average collection...

Question 8

Bentley and Moore has net working capital of $6,900, net fixed assets of $86,100, sales of $156,000, and current liabilities of $41,700. How many dollars' worth of sales are generated from every $1 in total assets?
A) $1.13
B) $1.16
C) $1.22
D) $1.25
E) $1.27

Accepted Answer

To find the sales generated per dollar of total assets, first calculate total assets: Total Assets = Net Working Capital + Net Fixed Assets + Current Liabilities = $6,900 + $86,100 + $41,700 = $134,700. Then, divide sales by total assets: $156,000 / $134,700 ≈ $1.16.

Question 9

An Edmonton firm has a debt-equity ratio of 62 %, a total asset turnover of 1.39, and a profit margin of 7.8 %. The total equity is $672,100. What is the amount of the net income?
A) $118,048
B) $119,600
C) $120,202
D) $121,212
E) $124,097

Accepted Answer

To find the net income, first calculate total assets using the equity and debt-equity ratio: Total Assets = Equity * (1 + Debt-Equity Ratio) = $672,100 * (1 + 0.62) = $1,088,002. Then, calculate sales using total asset turnover: Sales = Total Assets * Total Asset Turnover = $1,088,002 * 1.39 = $1,511,322.78. Finally, calculate net income using the profit margin: Net Income = Sales * Profit Margin = $1,511,322.78 * 0.078 = $118,048.38, which rounds to $118,048.

Question 10

If you were to prepare a statement of cash flows, what is the net cash flow from financing activities ($ in millions)?
A) - $678
B) - $108
C) $15
D) $1,325
E) $3,003

Accepted Answer

The answer of   If you were to prepare...

Question 11

Freda's, Inc. has sales of $3,200, current liabilities of $900, total assets of $3,000, and net working capital of $500. How many dollars' worth of sales are generated from every $1 in net fixed assets?
A) $.91
B) $1.07
C) $1.67
D) $2.00
E) $2.29

Accepted Answer

Net fixed assets = Total assets - Current liabilities - Net working capital = $3,000 - $900 - $500 = $1,600. Sales per dollar of net fixed assets = $3,200 / $1,600 = $2.00.

Question 12

Calculate the value of total equity given the following information: total debt ratio = 0.52; total assets = $25,000.
A) $11,000
B) $11,250
C) $11,500
D) $11,750
E) $12,000

Accepted Answer

The total debt ratio is defined as total debt divided by total assets. If the total debt ratio is 0.52, it means that 52% of the company's assets are financed through debt, leaving 48% (100% - 52%) financed through equity. Therefore, the value of total equity can be calculated as 48% of total assets, which is 0.48 * $25,000 = $12,000.

Question 13

Given the following information, calculate sales value. Total asset turnover 0.80; total liabilities $5,000; total equity $5,000.
A) $8,600
B) $8,000
C) $10,600
D) $11,600
E) $12,600

Accepted Answer

Total Asset Turnover = Sales / Total Assets
0.80 = Sales / (Total Liabilities + Total Equity)
0.80 = Sales / ($5,000 + $5,000)
0.80 = Sales / $10,000
Sales = 0.80 x $10,000
Sales = $8,000

Question 14

Swenson Motors has total debt of $682,400 and a debt-equity ratio of.65. What is the value of the total assets?
A) $1,049,846
B) $1,364,800
C) $1,414,141
D) $1,578,002
E) $1,732,246

Accepted Answer

The answer of Swenson Motors has total debt of $682,400...

Question 15

A Quebec City firm has a debt-equity ratio of.65. From this, you can determine that the firm has _____ in assets for every $1 in equity.
A) $.54
B) $.65
C) $1.54
D) $1.65
E) $2.54

Accepted Answer

The answer of A Quebec City firm has a debt-equity...

Question 16

Calculate depreciation expense given the following information. Interest expense $2,000; times interest earned 5; cash coverage ratio 5.5.
A) $1,000
B) $1,200
C) $1,400
D) $1,600
E) $1,800

Accepted Answer

The answer of Calculate depreciation expense given the following information....

Question 17

During the year, The Train Stop decreased its accounts receivable by $60, increased its inventory by $130, and decreased its accounts payable by $20. For these three accounts, the firm has a net:
A) $90 use of cash.
B) $50 use of cash.
C) $170 use of cash.
D) $90 source of cash.
E) $50 source of cash.

Accepted Answer

Decreasing accounts receivable means cash is collected, which is a source of cash (+$60). Increasing inventory uses cash (-$130). Decreasing accounts payable means cash is paid out, which is a use of cash (-$20). The net effect is a $90 use of cash ($60 - $130 - $20 = -$90).

Question 18

Calculate net income given the following information: tax rate = 30%; accounts receivable = $900; receivable turnover = 5 times; inventory = $500; inventory turnover = 3.20 times; operating expenses = $700; interest expense = $200.
A) $1,400
B) $1,465
C) $1,565
D) $1,665
E) $1,765

Accepted Answer

The answer of Calculate net income given the following information:...

Question 19

Supreme Corporation's total current assets are valued at $35,000 and are comprised of cash, accounts receivable and inventory. Determine the value of the cash account given the following information: sales = $140,000; cost of goods sold = $120,000; accounts receivable turnover = 17.50 times; inventory turnover = 8 times.
A) $11,000
B) $12,000
C) $13,000
D) $14,000
E) $15,000

Accepted Answer

The answer of Supreme Corporation's total current assets are valued...

Question 20

How many additional assets can RTF, Inc. acquire if the company issues an additional $1,000 in common stock ($ in millions)?
A) $1,000
B) $1,190
C) $1,500
D) $1,780
E) Cannot be determined from the information given.

Accepted Answer

The answer of   How many additional assets can...

Quiz 3: Working With Financial Statements

A Waterloo firm with net income of $500,000 pays 48% of net income out in dividends. If the firm has 150,000 shares of common stock outstanding, what is the dividend paid per share of stock?

The following statement of financial position and statement of comprehensive income should be used. How many dollars of sales are being generated by every $1 that Woodburn has in total assets($ in thousands) ? (Use 2018 assets)

Calculate total asset value given the following information: ROA = 5%; Total equity = $600,000 and ROE = 8%.

A firm has a total debt ratio of .47. This means that that firm has 47 cents in debt for every:

Calculate sales given the following data. Total fixed assets $400,000; long-term liabilities $155,000; total liabilities $280,000; total shareholders' equity $320,000; net working capital turnover 20.

A Kingston firm has net working capital of $2,580, net fixed assets of $13,120, sales of $22,580, and current liabilities of $1,610. How many dollars' worth of sales are generated from every $1 in total assets?

Atlasta Limo Corp. has an average collection period of 36.5 days. Sales are $300,001. What is the average investment in receivables?

Bentley and Moore has net working capital of $6,900, net fixed assets of $86,100, sales of $156,000, and current liabilities of $41,700. How many dollars' worth of sales are generated from every $1 in total assets?

An Edmonton firm has a debt-equity ratio of 62 %, a total asset turnover of 1.39, and a profit margin of 7.8 %. The total equity is $672,100. What is the amount of the net income?

If you were to prepare a statement of cash flows, what is the net cash flow from financing activities ($ in millions) ?

Freda's, Inc. has sales of $3,200, current liabilities of $900, total assets of $3,000, and net working capital of $500. How many dollars' worth of sales are generated from every $1 in net fixed assets?

Calculate the value of total equity given the following information: total debt ratio = 0.52; total assets = $25,000.

Given the following information, calculate sales value. Total asset turnover 0.80; total liabilities $5,000; total equity $5,000.

Swenson Motors has total debt of $682,400 and a debt-equity ratio of.65. What is the value of the total assets?

A Quebec City firm has a debt-equity ratio of.65. From this, you can determine that the firm has _____ in assets for every $1 in equity.

Calculate depreciation expense given the following information. Interest expense $2,000; times interest earned 5; cash coverage ratio 5.5.

During the year, The Train Stop decreased its accounts receivable by $60, increased its inventory by $130, and decreased its accounts payable by $20. For these three accounts, the firm has a net:

Calculate net income given the following information: tax rate = 30%; accounts receivable = $900; receivable turnover = 5 times; inventory = $500; inventory turnover = 3.20 times; operating expenses = $700; interest expense = $200.

How many additional assets can RTF, Inc. acquire if the company issues an additional $1,000 in common stock ($ in millions) ?