Reference no: EM131715279

QUESTION 1

Use the following selected financial data to calculate the net profit margin for RQP Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271.

Net sales$800,000
Cost of goods sold 500,000
Operating expenses 100,000
Net income 120,000
Total assets 640,000
Total liabilities 462,000

25.0%
15.0%
22.2%
37.5%
2 points

QUESTION 2

Use the following selected financial data to calculate the return on equity for CBA Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271.

Net sales$600,000
Cost of goods sold 450,000
Operating expenses 90,000
Net income 20,000
Total assets 220,000
Total liabilities 132,000

9.1%
33.3%
14.7%
22.7%
2 points

QUESTION 3

Use the following selected financial data to calculate the debt ratio for UTS Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271.

Net sales$700,000
Cost of goods sold 550,000
Operating expenses 80,000
Net income 30,000
Total assets 460,000
Total liabilities 310,000

44.3%
21.4%
67.4%
148.4%
2 points

QUESTION 4

Use the following selected financial data to calculate the total asset turnover for CBA Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271.

Net sales$600,000
Cost of goods sold 450,000
Operating expenses 90,000
Net income 20,000
Total assets 220,000
Total liabilities 132,000

0.4
1.7
2.7
3.7
2 points

QUESTION 5

Use the following selected financial data to calculate the current ratio for AB Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271.
Net sales$500,000
Current assets 130,000
Current liabilities 90,000
Net income 20,000
Total assets 220,000
Total liabilities 170,000

1.1
1.4
1.7
1.3