A firm has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908

A firm has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars worth of sales are generated from every $1 in total assets?    A.  $1.08 B.  $1.14 C.  $1.19 D.  $1.26 E.  $1.30 Total asset turnover = $31,350/($2,715 + $22,407 + $3,908) = 1.08 Every $1 in total assets generates $1.08 in sales.

63.

The Purple Martin has annual sales of $687,400, total debt of $210,000, total equity of $365,000, and a profit margin of 4.80 percent. What is the return on assets?    A.  5.74 percent B.  6.48 percent C.  7.02 percent D.  7.78 percent E.  9.79 percent Return on assets = (.048 × $687,400)/($210,000 + $365,000) = 5.74 percent

64.

Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt ratio of 78 percent. What is the return on equity?    A.  13.09 percent B.  16.67 percent C.  17.68 percent D.  28.56 percent E.  32.14 percent Return on equity = (.0968 × $807,200)/[$1,105,100 × (1 - .78)] = 32.14 percent

65.

The Meat Market has $747,000 in sales. The profit margin is 4.1 percent and the firm has 7,500 shares of stock outstanding. The market price per share is $22. What is the price-earnings ratio?    A.  5.39 B.  8.98 C.  11.42 D.  13.15 E.  14.27 Earnings per share = (.041 × $747,000)/7,500 = 4.0836 Price-earnings ratio = $22/4.0836 = 5.39