The Dockside Inn has net income for the most recent year of $8,450. The tax rate was 35 percent

A firm has a debt-total asset ratio of 74 percent and a return on total assets of 13 percent. What is the return on equity?    A.  26 percent B.  50 percent C.  65 percent D.  84 percent E.  135 percent (Total assets - Total equity)/Total assets = .74; Total equity = .26 Total assets Net income = .13 Total assets Return on equity = .13 Total assets/.26 Total assets = 50 percent

105.

The Dockside Inn has net income for the most recent year of $8,450. The tax rate was 35 percent. The firm paid $1,300 in total interest expense and deducted $1,900 in depreciation expense. What was the cash coverage ratio for the year?    A.  10.48 times B.  11.48 times C.  12.39 times D.  12.46 times E.  13.07 times Earnings before taxes = $8,450/(1 - .35) = $13,000.00 Earnings before interest, taxes, and depreciation = $13,000.00 + $1,300 + $1,900 = $16,200.00 Cash coverage ratio = $16,200.00/$1,300 = 12.46 times

106.

Beach Wear has current liabilities of $350,000, a quick ratio of 1.65, inventory turnover of 3.2, and a current ratio of 2.9. What is the cost of goods sold?    A.  $980,000 B.  $1,060,000 C.  $1,200,000 D.  $1,400,000 E.  $1,560,000 Current assets = 2.9 × $350,000 = $1,015,000 ($1,015,000 - Inventory)/$350,000 = 1.65; Inventory = $437,500 Costs of goods sold = 3.2 × $437,500 = $1,400,000