Below are sample questions
Question 1 (1 point)
Vintage, Inc. has a total asset turnover of 1.82 and a net profit margin of 6.50 percent. The total assets to equity ratio for the firm is 3.0. Calculate Vintage’s return on equity.
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).
Your Answer:
Question 2
Garden Pro Corporation has sales of $4,375,935; income tax of $507,097; the selling, general and administrative expenses of $294,139; depreciation of $309,476; cost of goods sold of $2,854,727; and interest expense of $105,196. Calculate the firm’s net income?
Question 3:
Question 1 (1 point)
a) Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, and using a 365-day year, calculate Average Day’s Cost of Goods Sold.
Round the answers to two decimal places
Balance Sheet December 31, 2015
Cash and marketable securities
$187,000
Accounts payable
$217,000
Accounts receivable
$498,000
Notes payable
$51,500
Inventories
$799,000
Accrued expenses
$58,300
Prepaid expenses
$19,300
Total cu
ent liabilities
$326,800
Total cu
ent assets
$1,503,300
Long-term debt
$215,400
Gross fixed assets
$1,978,000
Par value and paid-in-capital
$128,000
Less: accumulated depreciation
$478,000
Retained Earnings
$2,333,100
Net fixed assets
$1,500,000
Common Equity
2,461,100
Total assets
$3,003,300
Total liabilities and owner’s equity
$3,003,300
Income Statement, Year of 2015
Net sales (all credit)
$5,386,600.00
Less: Cost of goods sold
$3,716,754.00
Selling and administrative expenses
$329,000.00
Depreciation expense
$138,000.00
EBIT
$1,202,846.00
Interest expense
$39,600.00
Earnings before taxes
$1,163,246.00
Income taxes
$465,298.40
Net income
$697,947.60
Question 4:
Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firm’s inventory turnover ratio.
Round the answers to two decimal places
Balance Sheet December 31, 2011
Cash and marketable securities
$143,000
Accounts payable
$278,000
Accounts receivable
$354,000
Notes payable
$87,000
Inventories
$672,000
Accrued expenses
$65,000
Prepaid expenses
$12,500
Total cu
ent liabilities
$430,000
Total cu
ent assets
$1,181,500
Long-term debt
$284,000
Gross fixed assets
$1,675,000
Par value and paid-in-capital
$228,000
Less: accumulated depreciation
$500,000
Retained Earnings
$1,414,500
Net fixed assets
$1,175,000
Common Equity
1,642,500
Total assets
$2,356,500
Total liabilities and owner’s equity
$2,356,500
Income Statement Year of 2011
Net sales (all credit)
$3,136,600.00
Less: Cost of goods sold
$2,195,620.00
Selling and administrative expenses
$345,000.00
Depreciation expense
$146,000.00
EBIT
$449,980.00
Interest expense
$45,300.00
Earnings before taxes
$404,680.00
Income taxes
$161,872.00
Net income
$242,808.00
Your Answer: