1) A company has net working capital of $1,100 and present liabilities of $2,800. Determines the present ratio?
i) .98
ii) 2.56
iii) .39
iv) .72
v) 1.39
2) Classic sound, Inc., has total assets= $212,000, debt-equity ratio= .6, and net income= $9,500. Find out the return on equity?
i) 6.87 percent
ii) 7.17 percent
iii) 7.34 percent
iv) 7.50 percent
v) 7.67 percent
3) Jack Corporation has present assets= $11,400, inventories= $4,000, and a present ratio= 2.6. Determine Jack’s acid test ratio? Suppose pre-paid expenses is zero.
i) 1.69
ii) 0.54
iii) 0.74
iv) 1.35+
4) You are specified the given information for Tasty Pizza Co.: sales is $50,000; costs is $22,500; addition to retained earnings is $6,700; dividends paid is $2,400; interest expense is $4,900; tax rate is 35 percent. Compute the depreciation expense.