FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 19

defined as: 13. Which one of these equations is an accurate
expression of the balance sheet? 14. The Purple Martin has
annual sales of $4,900, total debt of $1,280, total equity of
$2,300, and a profit margin of 5 percent. What is the return on
assets? 15. A firm has a debt-equity ratio of .35. What is the
total debt ratio? 16. Galaxy United, Inc. 2009 Income Statement
($ in millions) What is the quick ratio for 2009? 17. Reliable
Cars has sales of $3,700, total assets of $3,050, 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 total debt
of $1,480 and a debt-equity ratio of .29. What is the value of the
total assets? 19. The sustainable growth rate: 20. If a firm bases
its growth projection on the rate of sustainable growth, shows
positive net income, and has a dividend payout ratio of 30
percent, then the: 21. Which account is least apt to vary directly
with sales? 22. If the Hunter Corp. has an ROE of 14 and a
payout ratio of 17 percent, what is its sustainable growth rate?
23. The Wintergrass Company has an ROE of 13.2 percent and
a payout ratio of 30 percent. What is the company’s sustainable
growth rate? 24. The most common means of financing a
temporary cash deficit is a: 25. The length of time between the
acquisition of inventory and its sale is called the: 26. Here are
the most recent balance sheets for Country Kettles, Inc.
Excluding accumulated depreciation, determine whether each
item is a source or a use of cash, and the amount. 27. Consider
the following financial statement information for the Rivers
Corporation: Calculate the operating and cash cycles. 28. The
nominal rate of return on a bond is 7.28 percent while the real
rate is 3.09 percent. What is the rate of inflation? 29. Unique
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