FELTON FARM SUPPLIES, INC. HAS AN ROA (RETURN ON ASSETS) OF 12 PERCENT, TOTAL ASSETS OF $300,000 AND A NET.
13. Felton Farm Supplies, Inc. has an ROA (return on assets) of 12 percent, total assets of $300,000 and a net profit margin of 4.5 percent. What are Felton Farm Supplies annual sales? 14. Krisle and Kringle’s debt-to-total assets ratio is 0.445 (i.e., debt ratio = 44.5%). What is the company’s debtto-equity ratio? (Enter answer as a ratio rounded to 2 decimal places – that is, do not convert to a percent; for example, enter 80/35 = 2.2857 as 2.29). 15. Philips, Inc has a debt ratio of 15% and ROE = 13%. What is Phillips’ ROA? (Enter answer as a percent).
19. This company’s gross profit margin (as a percent rounded to 1 decimal place) in 2014 was ________. 20. Assume that this is a retail company. If the company purchased products that it sold in 2015 for $5.00 per unit, how many units did the company purchase in 2015? 21. ROE for 2015 is _____%. 22. Cash flow from operating activities in 2015 is $ _______. 23. Cash flow from investing activities in 2015 is $ _________. 24. Cash flow from financing activities in 2015 is $ _________. USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING 3 QUESTIONS 2014 2015 Accounts payable 440 380 Accounts receivable, net 1,810 2,040 Accruals 95 120 Cash 120 90 Common stock 2,120 2,380 Cost of goods sold 6,610 6,420 Depreciation expense 1,560 1,630 Interest expense 140 170 Inventory (end of year) 5,720 5,530 Long-term debt 3,890 4,150 Net fixed assets 7,530 8,050 Net sales 10,750 11,650 Notes payable 800 740 Operating expenses (excluding depreciation) 1,680 1,780 Retained earnings 7,835 7,940 Taxes 260 380 25. Calculate the Cash flows from operating activities for 2011. 26. Calculate the Cash flows from investing activities for 2011. 27. Calculate the Cash flows from financing activities for 2011. 2010 2011 Cash 1,500 1,820 Account receivable 3,740 3,980 Inventory 10,120 8,470 Total current assets 15,360 14,270 Gross fixed assets 56,100 63,840 (Accumulated depreciation) (9,590) (11,000) Net fixed assets 46,510 52,840 Total assets 61,870 67,110 Notes payable 1,000 1,000 Accounts payable 2,260 4,150 Accruals 1,570 1,640 Current portion of LT debt 470 1,730 Total current liabilities 5,300 8,520 Lont-term debt 37,750 34,790 Common stock 1,000 1,500 Paid in capital 4,800 9,460 Retained earnings 13,020 12,840 Total liabilities and equity 61,870 67,110 Additional Data from 2011 Income Statement: Sales in 2011 238,000 Net income in 2011 9,940 Mellon Company Balance Sheet For the Years Ending December 31, 2010 and 2011 (All figures in dollars) USE THE FOLLOWING INFORMATION TO CONSTRUCT A BALANCE SHEET TO ANSWER QUESTIONS 28 through 30 Assume that the only accounts on the balance sheet are those listed below. Fill in this chart with the data provided and then answer questions 28, 29 and 30. Cash ____________ Notes payable ____________ Accounts receivable ____________ Accounts payable ____________ Inventory ____________ Long-term debt ____________ Gross fixed assets ____________ Equity ____________ (Accumulated depreciation) ____________ Total liab & equity ____________ Net fixed assets ____________ Total assets ____________ 28. Cash = ____________. 29. Long-term debt = ____________. 30. Total assets =____________. Sales $ 2,000,000 Gross profit margin 20% Inventory turnover ratio (Cost of goods sold/Inventory) 25 Net profit margin 4% Average collection period 45 Return on equity 25% Accumulated depreciation $ 75,000 Return on assets 12.5% Accounts payable days 18 Notes payable $ 18,000 Gross fixed assets $ 400,000 Percent of sales on credit (remainder are cash sales) 80% NOTE: Assume a 360 day year for all ratios, etc. USE THE FOLLOWING INFORMATION TO FILL IN THE BALANCE SHEET BELOW TO ANSWER QUESTIONS 31 through 34 Note: Of total sales, 60 percent are on credit and the remainder are cash sales. Assume a 360-day year. All data in the table above, unless otherwise stated, is for the year 2015. Hodun, Inc. Balance Sheet for the Year Ending December 31, 2015 Cash __________ Notes payable __________ Accounts receivable __________ Accounts payable __________ Inventory __________ Accruals __________ Net fixed assets __________ Long-term debt __________ Total assets __________ Common stock ($2 par value) __________ Capital surplus __________ Retained earnings __________ Total liab. & equity __________ 31. Cash = ____________. 32. Long-term debt = ____________. 33. Total assets =____________. 34. Capital surplus = __________. Number of shares outstanding 15,000 Average collection period (days) 60 Sales $200,000 Accounts payable days 90 Gross profit margin 20% Retained earnings (2010) $23,700 Inventory turnover ratio 4 Dividend payout ratio 80% Notes payable $ 8,000 Accruals $ 4,000 Net profit margin 15% Current ratio 1.5 Return on assets 8% Debt ratio 40% USE THE FOLLOWING DATA TO ANSWER QUESTIONS 35 – 40 35. Net fixed assets in 2014 were $__________. 36. COGS on the 2013 common-sized income statement was 24%. Therefore, COGS in 2013 was 37. The debt ratio for 2014 was ____%. 38. Cash flow from operations in 2014 was $________. 39. Cash flow from investing in 2014 was $__________. 40. Total dividends paid in 2014 was $_______.
19. This company’s gross profit margin (as a percent rounded to 1 decimal place) in 2014 was ________. 20. Assume that this is a retail company. If the company purchased products that it sold in 2015 for $5.00 per unit, how many units did the company purchase in 2015? 21. ROE for 2015 is _____%. 22. Cash flow from operating activities in 2015 is $ _______. 23. Cash flow from investing activities in 2015 is $ _________. 24. Cash flow from financing activities in 2015 is $ _________. USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING 3 QUESTIONS 2014 2015 Accounts payable 440 380 Accounts receivable, net 1,810 2,040 Accruals 95 120 Cash 120 90 Common stock 2,120 2,380 Cost of goods sold 6,610 6,420 Depreciation expense 1,560 1,630 Interest expense 140 170 Inventory (end of year) 5,720 5,530 Long-term debt 3,890 4,150 Net fixed assets 7,530 8,050 Net sales 10,750 11,650 Notes payable 800 740 Operating expenses (excluding depreciation) 1,680 1,780 Retained earnings 7,835 7,940 Taxes 260 380 25. Calculate the Cash flows from operating activities for 2011. 26. Calculate the Cash flows from investing activities for 2011. 27. Calculate the Cash flows from financing activities for 2011. 2010 2011 Cash 1,500 1,820 Account receivable 3,740 3,980 Inventory 10,120 8,470 Total current assets 15,360 14,270 Gross fixed assets 56,100 63,840 (Accumulated depreciation) (9,590) (11,000) Net fixed assets 46,510 52,840 Total assets 61,870 67,110 Notes payable 1,000 1,000 Accounts payable 2,260 4,150 Accruals 1,570 1,640 Current portion of LT debt 470 1,730 Total current liabilities 5,300 8,520 Lont-term debt 37,750 34,790 Common stock 1,000 1,500 Paid in capital 4,800 9,460 Retained earnings 13,020 12,840 Total liabilities and equity 61,870 67,110 Additional Data from 2011 Income Statement: Sales in 2011 238,000 Net income in 2011 9,940 Mellon Company Balance Sheet For the Years Ending December 31, 2010 and 2011 (All figures in dollars) USE THE FOLLOWING INFORMATION TO CONSTRUCT A BALANCE SHEET TO ANSWER QUESTIONS 28 through 30 Assume that the only accounts on the balance sheet are those listed below. Fill in this chart with the data provided and then answer questions 28, 29 and 30. Cash ____________ Notes payable ____________ Accounts receivable ____________ Accounts payable ____________ Inventory ____________ Long-term debt ____________ Gross fixed assets ____________ Equity ____________ (Accumulated depreciation) ____________ Total liab & equity ____________ Net fixed assets ____________ Total assets ____________ 28. Cash = ____________. 29. Long-term debt = ____________. 30. Total assets =____________. Sales $ 2,000,000 Gross profit margin 20% Inventory turnover ratio (Cost of goods sold/Inventory) 25 Net profit margin 4% Average collection period 45 Return on equity 25% Accumulated depreciation $ 75,000 Return on assets 12.5% Accounts payable days 18 Notes payable $ 18,000 Gross fixed assets $ 400,000 Percent of sales on credit (remainder are cash sales) 80% NOTE: Assume a 360 day year for all ratios, etc. USE THE FOLLOWING INFORMATION TO FILL IN THE BALANCE SHEET BELOW TO ANSWER QUESTIONS 31 through 34 Note: Of total sales, 60 percent are on credit and the remainder are cash sales. Assume a 360-day year. All data in the table above, unless otherwise stated, is for the year 2015. Hodun, Inc. Balance Sheet for the Year Ending December 31, 2015 Cash __________ Notes payable __________ Accounts receivable __________ Accounts payable __________ Inventory __________ Accruals __________ Net fixed assets __________ Long-term debt __________ Total assets __________ Common stock ($2 par value) __________ Capital surplus __________ Retained earnings __________ Total liab. & equity __________ 31. Cash = ____________. 32. Long-term debt = ____________. 33. Total assets =____________. 34. Capital surplus = __________. Number of shares outstanding 15,000 Average collection period (days) 60 Sales $200,000 Accounts payable days 90 Gross profit margin 20% Retained earnings (2010) $23,700 Inventory turnover ratio 4 Dividend payout ratio 80% Notes payable $ 8,000 Accruals $ 4,000 Net profit margin 15% Current ratio 1.5 Return on assets 8% Debt ratio 40% USE THE FOLLOWING DATA TO ANSWER QUESTIONS 35 – 40 35. Net fixed assets in 2014 were $__________. 36. COGS on the 2013 common-sized income statement was 24%. Therefore, COGS in 2013 was 37. The debt ratio for 2014 was ____%. 38. Cash flow from operations in 2014 was $________. 39. Cash flow from investing in 2014 was $__________. 40. Total dividends paid in 2014 was $_______.
