Reference no: EM133128608
Question 1 - Last year, Lenny's Lemonade had $3,500 in sales, and cost of goods sold was $2,000. Depreciation expenses totaled $500 and interest expense was $700. If the tax rate is 25%, what is the net profit margin for Lenny's Lemonade? What is its NOPAT margin?
a. 6.43% and 21.43%
b. 20.7% and 21.43%
c. 2.14% and 32.14%
d. 22.86% and 32.14%
Question 2 - In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.
2. What is the return on equity for Runs and Goses?
a. 26.1%
b. 44.7%
c. 62.6%
d. 18.4%
e. 7.9%
2. What is Runs and Goses' return on total assets?
a. 9.6%
b. 13.6%
c. 19.1%
d. 37.9%
e. 22.5%
3. What is the net profit margin for Runs and Goses?
a. 60.0%
b. 22.7%
c. 7.9%
d. 18.4%
e. 26.2%
4. Runs and Goses operating profit margin is?
a. 26.2%
b. 56.3%
c. 43.3%
d. 30.3%
e. 60.0%
5. The gross profit margin for Runs and Goses is?
a. 26.2%
b. 30.3%
c. 43.3%
d. 56.3%
e. 60.0%
6. What is Runs and Goses' sales to total asset ratio?
a. 1.91
b. 0.25
c. 0.52
d. 0.23
e. 0.57
7. What is the current ratio for Runs and Goses?
a. 1.46
b. 1.33
c. 1.23
d. 1.21
e. 1.13
8. The total-debt-total-asset ratio for Runs and Goses is?
a. 0.48
b. 0.71
c. 0.27
d. 0.53
e. 0.82
9. What is Runs and Goses' debt-to-equity ratio?
a. 0.91
b. 2.15
c. 0.48
d. 1.12
e. 2.32
10. What is the equity multiplier for Runs and Goses?
a. 4.59 times
b. 2.35 times
c. 0.48 times
d. 1.12 times
e. 1.91 times
11. The interest coverage ratio for Runs and Goses is:
a. 6.5 times
b. 4.5 times
c. 9.7 times
d. 3.5 times
e. 1.5 times
12. The type of financing used during the rapid-growth life cycle stage include:
a. second-round financing
b. mezzanine financing
c. liquidity-stage financing
d. all of the above
13. First-round financing occurs primarily during which of the following life cycle stages?
a. development stage
b. startup stage
c. survival stage
d. rapid-growth stage
14. Investment bankers often play an important role in which of the following life cycle stages?
a. development stage
b. startup stage
c. survival stage
d. rapid-growth stage