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16.Galaxy United, Inc.
2009 Income Statement
17.Reliable Cars has sales of $3,850, total assets of $3,350, and a profit
margin of 5 percent. The firm has a total debt ratio of 41 percent. What is
the return on equity?
18. A firm has net working capital of $344, net fixed assets of $2,292, sales
of $6,000, and current liabilities of $800. How many dollars worth of sales
are generated from every $1 in total assets?
19.One of the primary weaknesses of many financial planning models is
that they:
ignore the goals and objectives of senior management.
ignore the size, risk, and timing of cash flows.
are iterative in nature.
rely too much on financial relationships and too little on accounting
relationships.
ignore cash payouts to stockholders.
20.The external funds needed (EFN) equation projects the addition to
retained earnings as:
21.Which account is least apt to vary directly with sales?
accounts payable
inventory
accounts receivable
notes payable
cost of goods sold
22. The Wintergrass Company has an ROE of 15.1 percent and a payout
ratio of 40 percent.
What is the company’s sustainable growth rate? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)