The Supply Co. has total equity of $639,400 and net income of $51,700. The debt-equity ratio is .

55 and
the total asset turnover is 1.4. What is the profit margin?
A. 3.73 percent

B. 4.86 percent

C. 6.68 percent

D. 7.24 percent

E. 8.99 percent

Morgan's Industrial Park has total assets of $541,700, long-term debt of $201,400, total equity of
$306,800, fixed assets of $469,200, and sales of $600,500. The profit margin is 7 percent. What is the
current ratio?
A. .46

B. .91

C. 1.01

D. 1.59

E. 2.16

Your firm has cash of $1,600, accounts receivable of $2,500, inventory of $1,900, and net working
capital of $500. What is the cash ratio?
A. .29

B. .33

C. .41

D. .80

E. .88

Larson, Inc. has total assets of $248,000 and an equity multiplier of 2.5. What is the debt-equity ratio?
A. .40

B. .67

C. 1.5

D. 2.5
E. 3.5

Singletrak, Inc. has sales of $348,900, cost of goods sold of $294,300, and inventory of $41,200. What is
the inventory turnover rate?
A. 1.33

B. 4.28

C. 6.67

D. 7.14

E. 8.47

It takes American, Inc. an average of 31 days to sell its inventory and an average of 22 days to collect on
the sales of that inventory. What is the inventory turnover rate?
A. 11.77

B. 16.59

C. 26.33

D. 31.12

E. 43.89

A firm has $28,700 in receivables and $165,600 in total assets. The total asset turnover rate is 1.85 and
the profit margin is 7 percent. What are the days' sales in receivables?
A. 10.69 days

B. 34.19 days

C. 52.38 days

D. 90.37 days

E. 117.03 days

Nagel, Inc. has sales of $330,600, total assets of $252,100, and a profit margin of 7.5 percent. What is
the return on assets?
A. 5.72 percent

B. 6.10 percent

C. 7.63 percent

D. 8.34 percent
E. 9.84 percent

Saddle Industries has sales of $510,400, total equity of $250,000, a profit margin of 8 percent and a
debt-equity ratio of .60. What is the return on assets?
A. 6.27 percent

B. 8.74 percent

C. 10.21 percent

D. 12.80 percent

E. 16.33 percent

Decorative Paintings has total debt of $69,000, total equity of $345,000, and a return on equity of 10
percent. What is the return on assets?
A. 8.33 percent

B. 11.25 percent

C. 12.50 percent

D. 14.75 percent

E. 16.67 percent
The Laptop Company has sales of $874,000, a profit margin of 9 percent, a total asset turnover rate of
.80, and an equity multiplier of 1.75. What is the return on equity?
A. 5.14 percent

B. 7.20 percent

C. 10.86 percent

D. 12.60 percent

E. 15.75 percent