Reference no: EM131859603

1. Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

$100,000

$250,000

$375,000

$500,000

$650,000

2. ____ A firm has revenue of $500K, and a profit margin of 10% for the current year. The balance sheet for the current year shows current assets of $100K, fixed assets of $300K, and current liabilities of $200K. The company does not have any long term debt. The company expects sales to grow by 10% next year. Using the assumptions below, what is the external financing needed for next year?

Sales growth is 10%

All expenses vary with sales

All current assets grow with sales, but current liabilities do not grow with sales

Fixed assets are at 100% utilization and thus require growth

3. The company’s dividend payout ratio is 45.455%

$10K shortfall (EFN needed)

$10K surplus (excess cash available)

$40K of surplus (excess cash available)

$40K shortfall (EFN needed)

4. _____Based on the data in the problem above, the internal growth rate for this company would be __________.

3.4%

7.4%

8.4%

9.4%

None of the above

5. Determine the equity multiplier for a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%, total equity = $50,000, and long-term debt = $100,000.

.17

.20

1.47

1.8