FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 6

tax rate of 40 percent. (Do not round intermediate calculations.) What
is the net income for the firm? 12. On a balance sheet, deferred taxes
are classified as: 13. Which one of these equations is an accurate
expression of the balance sheet? 14. Galaxy United, Inc. 2009 Income
Statement 15. The Purple Martin has annual sales of $4,600, total debt
of $1,230, total equity of $2,500, and a profit margin of 6 percent.
What is the return on assets? 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. 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 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.) 23. If the Hunter Corp. has an ROE of 7 and a payout ratio of
15 percent, what is its sustainable growth rate?(Do not round
intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.) 24. The length of time between the
acquisition of inventory and its sale is called the: operating cycle. 25.
The most common means of financing a temporary cash deficit is a:
long-term secured bank loan. long-term unsecured bank loan. short-
term secured bank loan. short-term issue of corporate bonds. short-
term unsecured bank loan. 26. Consider the following financial
statement information for the Rivers Corporation: 27. 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. (Do not round intermediate
calculations and round your answers to the nearest whole number,
e.g., 32. Input all amounts as positive values): 28 The relationship
between nominal rates, real rates, and inflation is known as the: