BL Lumber has earnings per share of $1.21. The firm's earnings have been increasing at an average rate of 3.1 percent annually

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79. What is the net working capital to total assets ratio for 2012?  C.  45.49 percent Net working capital to total assets for 2012 = ($27,129 - $8,384)/$41,209 = 45.49 percent

80. How many days on average does it take Precision Tool to sell its inventory? (Use 2012 values)  E.  283.31 days Days' sales in inventory = 365/($28,225/$21,908) = 283.31 days

81. How many dollars of sales are being generated from every dollar of net fixed assets? (Use 2012 values.)  D.  $2.59 Fixed asset turnover for 2012 = $36,408/$14,080 = 2.59

82. What is the equity multiplier for 2012?  D.  1.93  Equity multiplier for 2012 = $41,209/($17,500 + $3,825) = 1.93

83. What is the times interest earned ratio for 2012?  C.  12.59 Times interest earned for 2012 = $6,423/$510 = 12.59

84. What is the return on equity for 2012?  D.  18.02 percent Return on equity for 2012 = $3,843/($17,500 + $3,825) = 18.02 percent

85. What is the net cash flow from investment activity for 2012?  B.  -$1,680 Addition to net fixed assets = $14,080 - $14,160 + $1,760 = $1,680

86. How does accounts receivable affect the statement of cash flows for 2012?  E.  a use of $807 of cash as an operating activity Change in accounts receivable for 2012 = $4,218 - $3,411 = $807 An increase in accounts receivable is a use of cash as an operating activity.

87.

BL Lumber has earnings per share of $1.21. The firm's earnings have been increasing at an average rate of 3.1 percent annually and are expected to continue doing so. The firm has 21,500 shares of stock outstanding at a price per share of $15.60. What is the firm's PEG ratio?    A.  0.48 B.  1.24 C.  2.85 D.  3.97 E.  4.16 PEG ratio = ($15.60/$1.21)/(.031 × 100) = 4.16

88.

Townsend Enterprises has a PEG ratio of 5.3, net income of $49,200, a price-earnings ratio of 17.6, and a profit margin of 7.1 percent. What is the earnings growth rate?    A.  0.33 percent B.  1.06 percent C.  3.32 percent D.  5.30 percent E.  10.60 percent 5.3 = 17.6/(Earnings growth rate × 100); Earnings growth rate = 3.32 percent