A firm has a debt-equity ratio of 57 percent, a total asset turnover of 1.12, and a profit margin of 4.9 percent.

A firm has a debt-equity ratio of 57 percent, a total asset turnover of 1.12, and a profit margin of 4.9 percent. The total equity is $511,640. What is the amount of the net income?    A.  $28,079 B.  $35,143 C.  $44,084 D.  $47,601 E.  $52,418 Return on equity = .049 × 1.12 × (1 + 0.57) = .0861616 Net income = $511,640 × .0861616 = $44,084

71.	What is the quick ratio for 2012?    A.  0.52 B.  0.54 C.  1.32 D.  1.67 E.  1.79 Quick ratio for 2012 = ($259,900 - $186,700)/$134,700 = 0.54

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72. How many days of sales are in receivables? (Use 2012 values)  E.  33.70 days Accounts receivable turnover for 2012 = $614,100/$56,700 = 10.8307 Days' sales in receivables for 2012 = 365/10.8307 = 33.7

73. What is the price-sales ratio for 2012 if the market price is $18.49 per share?  D.  4.22  Price-sales ratio = $18.49/[$614,1000/($140,000/$1)] = 4.22

74. What is debt-equity ratio? (Use 2012 values)  D.  0.99  Debt-equity ratio = ($134,700 + $135,500)/($140,000 + $131,800) = 0.99

75. What is the cash coverage ratio for 2012?  B.  9.18 Cash coverage ratio = ($81,500 + $11,200)/$10,100 = 9.18

76. What is the return on equity? (Use 2012 values)   C.  15.64 percent Return on equity = $42,500/($140,000 + $131,800) = 15.64 percent

77. What is the amount of the dividends paid for 2012?  E.  $31,400 Dividends paid = $42,500 - ($131,800 - $120,700) = $31,400

78. What is the amount of the cash flow from investment activity for 2012?  D.  $32,000 Cash flow from investment activity = $282,100 - $261,300 + $11,200 = $32,000