Total liabilities and owners' equity
15. Preparing Standardized Financial Statements. Prepare the 2007 and 2008 common-size balance sheets for Bethesda Mining.
16. Calculating Financial Ratios. Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year:
a. Current ratio b. Quick ratio c. Cash ratio d. Debt-equity ratio and equity multiplier e. Total debt ratio
17. Du Pont Identity. Suppose that the Bethesda Mining Company had sales of 52.678,461 and net income of $132,186 for the year ending December 31, 2008. Calculate the Du Pont identity.
18. Du Pont Identity. The Pawlonia Tree Company has an ROA of 12 percent.
a 7 percent profit margin, and an ROE of 17 percent. What is the company's total asset turnover? What is the equity multiplier?
19. Return on Assets. Bartlett's Pears has a profit margin of 7.5 percent on sales of $26,000,000. If the firm has debt of $9,500,000 and total assets of $19,000,000, what is the firm's ROA?
20. Calculating Internal Growth. The most recent financial statements for Conolv Manufacturing Co. are shown below:
income Statement Balance Sheet
Sales $41,800 Current assets $18,000 Debt $28,600
Costs 23,820 Fixed assets 68,900 Equity 58,300
Taxable income $17,980 Total $86,900 Total $86,900 Tax (35%) 6,293 Net Income $11,687
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external financing is possible. What is the internal growth rate?
21. Calculating Sustainable Growth. ForConoly Manufacturing in Problem 20. what is the sustainable growth rate?
22. Total Asset Turnover. Kaleb's Karate Supply had a profit margin of 9 percent, sales of $17 million, and total assets of $7 million. What was total asset turnover? If management set a goal of increasing total asset turnover to 2.75 times, what would the new sales figure need to be, assuming no increase in total assets?
23. Return on Equity. Schism, Inc.. has a total debt ratio of 0.70, total deb! of $265,000. and net income of S24.850. What is the company's return on equity?
24. Market Value Ratios. Riggins Trucking, Inc., has a current stock price of $41. For the past year, (he company had net income of $5,150,000. total equity of S21,580.000. sales of $39,000,000, and 4.1 million shares of stock outstanding. What is the earnings per share (EPS)? Price-earnings ratio? Price-sales ratio? Book value per share? Market-to-book ratio?
25. Profit Margin. Rolston Recording has total assets of $ 10,500.000 and a total asset turnover of 2.10 times. If the return on assets is 13 percent, what is its profit margin?
26. Using the Du Pont Identity. Y3K. Inc.. has sales of $9,980. total assets of $3,140. and a debt-equity ratio of 0.25. If its return on equity is 16 percent, what is its net income?
27. Ratios and Fixed Assets. The Hooya Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of 0.60 and a current ratio of 1.3. Current liabilities are $900, sales are $6,590, profit margin is 9 percent, and ROE is 16 percent. What is the amount of the firm's net fixed assets?
28. Profit Margin. In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $1 to go buy $25 worth of groceries, then your child makes twice as much on the trip as we do." You've collected the following information from the grocery chain's financial statements:
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