Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.6. Current liabilities are $700, sales are $4,440

Canine Supply has sales of $2,200, total assets of $1,400, and a debt-equity ratio of 0.5. Its return on equity is 15 percent. What is the net income?    A.  $128.16 B.  $131.41 C.  $132.09 D.  $136.67 E.  $140.00 Return on equity = .15 = (Net income/$2,200) × ($2,200/$1,400) × (1 + 0.50) Net income = $140.00

102.

Billings, Inc. has net income of $161,000, a profit margin of 7.6 percent, and an accounts receivable balance of $127,100. Assume that 66 percent of sales are on credit. What is the days' sales in receivables?    A.  21.90 days B.  27.56 days C.  33.18 days D.  35.04 days E.  36.19 days Sales = $161,000/.076 = $2,118,421 Credit sales = $2,118,421 × .66 = $1,398,158 Accounts receivable turnover = $1,398,158/$127,100 = 11 times Days' sales in receivables = 365/11 = 33.18 days

103.

Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.6. Current liabilities are $700, sales are $4,440, the profit margin is 9.5 percent, and the return on equity is 19.5 percent. How much does the firm have in net fixed assets?    A.  $4,880.18 B.  $4,987.69 C.  $5,666.67 D.  $5,848.15 E.  $6,107.70 Current assets = 1.6 × $700 = $1,120 Net income = .095 × $4,440 = $421.80 Total equity = $421.80/.195 = $2,163.0769 0.6 = Long term debt/(Long-term debt + $2,163.0769); Long-term debt = $3,244.6153 Total debt = $700 + $3,244.6153 = $3,944.6153 Total assets = $3,944.6153 + $2,163.0769 = $6,107.6922 Net fixed assets = $6,107.6922 - $1,120 = $4,987.69