FIN 571 Course Great Wisdom / tutorialrank.com FIN 571 Course Great Wisdom / tutorialrank.com | Page 25

payable of $860,000. These notes carried an interest rate of 6 percent.
Depreciation was $136,000. The firm’s tax rate was 40 percent.
a.

What was the firm’s net income?

b.

What was the firm’s operating cash flow?

9.Use the following information for Ingersoll, Inc., (assume the tax
rate is 35 percent):
a.
Prepare an income statement for this company for 2014 and
2015.
b.

Prepare the balance sheet for this company for 2014 and 2015.

10.Jessica's Boutique has cash of $54, accounts receivable of $52,
accounts payable of $220, and inventory of $160. What is the value of
the quick ratio?
11.Al's Sport Store has sales of $3,020, costs of goods sold of $2,020,
inventory of $523, and accounts receivable of $448. How many days,
on average, does it take the firm to sell its inventory assuming that all
sales are on credit?
12.Which statement expresses all accounts as a percentage of total
assets?
13.The inventory turnover ratio is measured as:
14.The total asset turnover ratio measures the amount of:
15.A firm has a debt-equity ratio of .44. What is the total debt ratio?
16.A firm has total debt of $1,340 and a debt-equity ratio of .27.
What is the value of the total assets?
17.A firm has a total debt ratio of .47. This means the firm has 47
cents in debt for every: