1. SDJ, Inc., has net working capital of $1,490, current liabilities of $4,660, and inventory of $1,845.
(a) What is the current ratio?
(b) What is the quick ratio?
2. Wakers, Inc., has sales of $32 million, total assets of $24 million, and total debt of $9 million.
(a) If the profit margin is 8 percent, what is the net income?
(b) What is the ROA?
(c) What is the ROE?
3. Ortiz Lumber Yard has a current accounts receivable balance of $317,615. Credit sales for the year just ended were $2,938,600.
(a) What is the receivables turnover?
(b) What is the days' sales in receivables?
4. Crystal Lake, Inc., has a total debt ratio of 0.31.
(a) What is its debt-equity ratio?
(b) What is its equity multiplier?
5. Use the following information to answer this question.
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Windswept, Inc. 2010 Income Statement ($ in millions)
|
|
Net sales
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$ 9,600
|
|
Less: Cost of goods sold
|
7,810
|
|
Less: Depreciation
|
470
|
|
Earnings before interest and taxes
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$ 1,320
|
|
Less: Interest paid
|
106
|
|
Taxable Income
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$ 1,214
|
|
Less: Taxes
|
425
|
|
Net income
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$ 789
|
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Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)
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|
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2009
|
2010
|
|
2009
|
2010
|
|
Cash
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$ 240
|
$ 270
|
Accounts payable
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$ 1,410
|
$ 1,410
|
|
Accounts rec.
|
1,020
|
920
|
Long-term debt
|
1,110
|
1,310
|
|
Inventory
|
1,840
|
1,710
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Common stock
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$ 3,360
|
$ 3,280
|
|
Total
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$ 3,100
|
$ 2,900
|
Retained earnings
|
650
|
900
|
|
Net fixed assets
|
3,430
|
4,000
|
|
|
|
|
Total assets
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$ 6,530
|
$ 6,900
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Total liab. & equity
|
$ 6,530
|
$ 6,900
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What is the quick ratio for 2010?
Use the following information to answer this question.
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Windswept, Inc. 2010 Income Statement ($ in millions)
|
|
Net sales
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$ 11,550
|
|
Less: Cost of goods sold
|
8,200
|
|
Less: Depreciation
|
445
|
|
Earnings before interest and taxes
|
$ 2,905
|
|
Less: Interest paid
|
110
|
|
Taxable Income
|
$ 2,795
|
|
Less: Taxes
|
978
|
|
Net income
|
$ 1,817
|
|
Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)
|
|
|
2009
|
2010
|
|
2009
|
2010
|
|
Cash
|
$ 330
|
$ 360
|
Accounts payable
|
$ 1,990
|
$ 2,067
|
|
Accounts rec.
|
1,210
|
1,110
|
Long-term debt
|
1,120
|
1,403
|
|
Inventory
|
2,150
|
1,820
|
Common stock
|
$ 3,460
|
$ 3,080
|
|
Total
|
$ 3,690
|
$ 3,290
|
Retained earnings
|
700
|
950
|
|
Net fixed assets
|
3,580
|
4,210
|
|
|
|
|
Total assets
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$ 7,270
|
$ 7,500
|
Total liab. & equity
|
$ 7,270
|
$ 7,500
|
What is the equity multiplier for 2010?