Lassiter Industries has annual sales of $220,000 with 10,000 shares of stock outstanding

Lassiter Industries has annual sales of $220,000 with 10,000 shares of stock outstanding. The firm has a profit margin of 6 percent and a price-sales ratio of 1.20. What is the firm's price-earnings ratio?    A.  14 B.  16 C.  18 D.  20 E.  22 Price per share = 1.20 × ($220,000/10,000) = $26.40 Earnings per share = ($220,000 × .06)/10,000 = $1.32 Price-earnings ratio = $26.40/$1.32 = 20

94.

The Burger Hut has sales of $29 million, total assets of $43 million, and total debt of $13 million. The profit margin is 11 percent. What is the return on equity?    A.  7.42 percent B.  10.63 percent C.  11.08 percent D.  13.31 percent E.  14.28 percent Return on equity = (.11 × $29m)/($43m - $13m) = 10.63 percent

95.

The Home Supply Co. has a current accounts receivable balance of $280,000. Credit sales for the year just ended were $1,830,000. How many days on average did it take for credit customers to pay off their accounts during this past year?    A.  54.29 days B.  55.01 days C.  55.50 days D.  55.85 days E.  61.00 days Receivables turnover = $1,830,000/$280,000 = 6.536 times Days' sales in receivables = 365/6.536 = 55.85 days

96.

BL Industries has ending inventory of $300,000, and cost of goods sold for the year just ended was $1,410,000. On average, how long does a unit of inventory sit on the shelf before it is sold?    A.  17.16 days B.  21.43 days C.  77.66 days D.  78.29 days E.  83.13 days Inventory turnover = $1,410,000/$300,000 = 4.7 times Day's sales in inventory = 365/4.7 = 77.66 days