BUS 320 Chapter 4 Assignment
1.
Given the following, find the Inventory Turnover Ratio (Ans. = 4.0):
Profit Margin = 12%
Current Assets = $9,500
Quick Ratio = 1.5
Current Liabilities = $3,000
Net Income = $2,400
2.
Find Times Interest Earned given the following (Ans. = 7.67):
Total Debt = $1,200,000
Profit Margin = 6%
Tax Rate = 25%
Annual Interest Rate = 10%
Sales = $10,000,000
3.
Find Return on Equity given the following (Ans. = 12.5%):
Debt Ratio = .60
Current Liabilities = $100,000
Long Term Debt = $500,000
Net Income = $50,000
4.
Find the Debt Ratio given the following (Ans. = .50):
Total Equity = $400,000
Current Assets = $100,000
Total Asset Turnover = 2.0
Profit Margin = 10%
Net Income = $160,000
5.
Given the following, find the Inventory Turnover Ratio (Ans. = 4.0):
Profit Margin = 10%
Fixed Assets = $300,000
Quick Ratio = 1.5
Current Liabilities = $200,000
Net Income = $80,000
Total Assets = $800,000
6.
Find Net Income given the following (Ans. = $9,600):
Total Equity = $40,000
Equity Multiplier = 2.4
Return on Assets = 10%
7.
Given the following, find the Current Ratio (Ans. = 5.0) and Total Assets (Ans. = $44,000):