Questions from Corporate Finance

Q: Y3K, Inc., has sales of $6,183, total assets of $2,974,

Y3K, Inc., has sales of $6,183, total assets of $2,974, and a debt-equity ratio of .57. If its return on equity is 11 percent, what is its net income?

Q: A company has net income of $196,500, a profit margin

A company has net income of $196,500, a profit margin of 6.8 percent, and an accounts receivable balance of $119,630. Assuming 65 percent of sales are on credit, what is the company’s days’ sales in r...

Q: DTO, Inc., has sales of $16.7 million, total assets of

DTO, Inc., has sales of $16.7 million, total assets of $12.9 million, and total debt of $5.7 million. If the profit margin is 5 percent, what is net income? What is ROA? What is ROE?

Q: The Maurer Company has a long-term debt ratio of .35

The Maurer Company has a long-term debt ratio of .35 and a current ratio of 1.30. Current liabilities are $955, sales are $7,210, profit margin is 8.3 percent, and ROE is 17.5 percent. What is the amo...

Q: In response to complaints about high prices, a grocery chain

In response to complaints about high prices, a grocery chain runs the following advertising campaign: “If you pay your child $1.50 to go buy $50 worth of groceries, then your child makes twice as much...

Q: Firm A and Firm B have debt-total asset ratios of

Firm A and Firm B have debt-total asset ratios of 65 percent and 45 percent, respectively, and returns on total assets of 5 percent and 9 percent, respectively. Which firm has a greater return on equi...

Q: Pop Evil Inc.’s net income for the most recent year

Pop Evil Inc.’s net income for the most recent year was $16,481. The tax rate was 34 percent. The firm paid $3,681 in total interest expense and deducted $4,385 in depreciation expense. What was the c...

Q: Highly Suspect Corp. has current liabilities of $415,000, a quick

Highly Suspect Corp. has current liabilities of $415,000, a quick ratio of .79, inventory turnover of 9.5, and a current ratio of 1.25. What is the cost of goods sold for the company?

Q: For the company in Problem 6, what is the sustainable

For the company in Problem 6, what is the sustainable growth rate?Data from Problem 6:The most recent financial statements for Bello Co. are shown here:

Q: BQ, Inc., is considering making an offer to purchase iReport

BQ, Inc., is considering making an offer to purchase iReport Publications. The vice president of finance has collected the following information:BQ also knows that securities analysts expect the earni...