FIN 571 Course Great Wisdom / tutorialrank.com FIN 571 Course Great Wisdom / tutorialrank.com | Page 4

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: