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USE THE FOLLOWING INFORMATION TO FILL-IN THE BALANCE SHEET BELOW (note that the accounts listed below are the ONLY accounts on this companys balance sheet) AND THEN ANSWER QUESTIONS 1 THROUGH 9

Gross profit margin = 70%

Inventory turnover ratio = 5 times

Sales = $4,000

Net profit margin = 5%

Average collection period = 45 days

Return on equity = 50%

Return on assets = 20%

Cash = $75

Current ratio = 2.50 times

Accounts payable days = 30 days

Note: Of total sales, 80 percent are on credit and the remainder are cash sales. Assume a 360-day year.

Cash	__________		Notes payable	__________
Accounts receivable	__________		Accounts payable	__________
Inventory	__________		Long-term debt	__________
Net fixed assets	__________		Equity	__________
Total assets	__________		Total liab. & equity	__________

QUESTION:

Cash = _____

NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign and without any commas. Thus, record $20002,000.63 as 2001.

Your Answer:

Question 1 options:

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Question 2 (5 points)

QUESTION: Accounts Receivable = __________ NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign or a decimal. For example, record $20002,000.64 as 2001.

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Question 3 (5 points)

QUESTION: Inventory = __________ NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign or a decimal. For example, record $20002,000.64 as 2001.

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Question 4 (5 points)

QUESTION: Net Fixed Assets = __________ NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign or a decimal. For example, record $20002,001.64 as 2001.

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Question 5 (5 points)

QUESTION: Total Assets = __________ NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign or a decimal. For example, record $20002,000.64 as 2001.

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Question 6 (5 points)

QUESTION: Notes Payable = __________ NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign or a decimal. For example, record $20002,000.64 as 2001.

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Question 7 (5 points)

QUESTION: Accounts Payable = __________ NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign or a decimal. For example, record $20002,001.64 as 2001.

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Question 8 (5 points)

QUESTION: Long-Term Debt = __________ NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign or a decimal. For example, record $20002,000.64 as 2001.

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Question 9 (5 points)

QUESTION: Equity = __________ NOTE: If necessary, round your answer to the nearest dollar and record your answer without a dollar sign or a decimal. For example, record $20002,001.64 as 2001.

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Question 10 (5 points)

Use the following information to answer the next 5 questions:

Balance Sheet
Smithson Iron, Incorporated (Years ending December 31)
	2011		2012
Cash	24,000		22,200
Accounts receivable	40,000		33,000
Inventory	52,200		83,100
Net plant and equipment	285,000		295,000
Total assets	401,200		433,300
Notes payable	16,000		13,000
Accounts payable	49,000		57,000
Accruals	6,000		5,000
Long-term debt	160,000		175,000
Common stock ($2.50 par)	25,000		27,000
Capital surplus	80,000		84,000
Retained earnings	65,200		72,300
Total Liab. & Equity	401,200		433,300

Miscellaneous Income Statement Data:

Sales (2011) = $832,400

Sales (2012) = $923,400

Net income (2011) = $42,300

Net income (2012) = $47,800

QUESTION: Compute the Current Ratio for 2012.

Round your answer to 2 decimal places and record without a dollar sign, percent sign or any other qualifier. That is, record 1.9274 as 1.93.

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Question 11 (5 points)

What is the Debt Ratio of Smithson Iron, Inc. for 2012?

Record your answer as a decimal rounded to 2 decimal places; that is, record 0.2487658 as 0.25.

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Question 12 (5 points)

What were Earnings per Share (EPS) of Smithson Iron, Inc. for 2011?

Record your answer as a decimal rounded to 2 decimal places, but do not include a dollar sign; that is, record $3.129756 as 3.13.

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Question 13 (5 points)

What is the Return on Assets of Smithson Iron, Inc. for 2012?

Record your answer as a percent value rounded to 1 decimal place, but do not include a percent sign with your answer; that is, record 0.438145 = 43.8145% as 43.8.

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Question 14 (5 points)

What is the Return on Equity of Smithson Iron, Inc. for 2011?

Record your answer as a percent value rounded to 1 decimal place, but do not include a percent sign with your answer; that is, record 0.438145 = 43.8145% as 43.8.

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Question 15 (5 points)

Assume you are given the following information:

Current ratio = 3.0 times

Quick ratio = 2.0 times

Current liabilities = $200,896

Compute Inventory.

(Record your answer without a dollar sign and without commas. Thus, record $123,400 as 123400).

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Question 16 (5 points)

If ROA (return on assets) = 5% and if ROE (return on equity) = 48%, what is the firm's debt ratio (i.e., Debt/Total assets). Assume, as always, that the balance sheet identity equation holds.

Record your answer as a percent rounded to one decimal place, but do not include the percent sign in your answer. For example, record 0.3428543 = 34.28543% as 34.3.

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Question 17 (5 points)

If ROA (return on assets) = 6% and if ROE (return on equity) = 55%, what is the firm's equity multiplier (i.e., Total assets/Equity).

Round your answer to two decimal places. For example, record 1.31854 as 1.32.

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Question 18 (5 points)

Given the following information for the Duke Tire Company, find the firm's debt ratio (i.e., total liabilities / total assets):

ROE (N/E) = 0.37 (expressed as a decimal)

Total asset turnover ratio (S/A) = 3.9

Net profit margin (N/S) = 0.10 (expressed as a decimal)

Record your answer as a percent rounded to one decimal place, but do not include a percent sign in your answer. For example, record .347924 = 34.7924% as 34.8.

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Question 19 (5 points)

Given the following information for the Duke Tire Company, find ROA (Return on Assets):

Debt ratio (D/A) = 0.36 (expressed as a decimal)

Total asset turnover ratio (S/A) = 1.03

Sales (S) = $10,000

Net profit margin = 0.05 (expressed as a decimal)

Record your answer as a percent rounded to one decimal place, but do not include a percent sign in your answer. For example, record .347924 = 34.7924% as 34.8.

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Question 20 (5 points)

If a firm has a debt ratio (i.e., D/A) of 56%, what is the firm's debt to equity (i.e., D/E) ratio?

Record your answer as a ratio rounded to 2 decimal places. For example, record D/E = 100/180 = 0.56 or D/E = 300/125 = 2.40.

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