Questions from General Finance

Q: K. Johnson, Inc.’s managers want to evaluate the

K. Johnson, Inc.’s managers want to evaluate the firm’s prior-year performance in terms of its contribution to shareholder value. This past year, the firm earned an operating return on investment of 1...

Q: Emma’s Electronics Incorporated has total assets of $63 million and total

Emma’s Electronics Incorporated has total assets of $63 million and total debt of $42 million. The company also has operating profits of $21 million with interest expenses of $6 million. a. What is Em...

Q: Drew Concrete uses Economic Value Added as a financial performance measure.

Drew Concrete uses Economic Value Added as a financial performance measure. Drew has $240 million in assets, and the firm has financed its assets with 37 percent equity and 63 percent debt with an i...

Q: Artz, Inc.’s financial statements for 2015 are shown below

Artz, Inc.’s financial statements for 2015 are shown below: Sales………………………………………&h...

Q: Use the information from the balance sheet and income statement below to

Use the information from the balance sheet and income statement below to calculate the following ratios: Current ratio………………………&hell...

Q: The Malia Corporation had sales in 2015 of $65 million,

The Malia Corporation had sales in 2015 of $65 million, total assets of $42 million, and total liabilities of $20 million. The interest rate on the company’s debt is 6 percent, and its tax rat...

Q: Last year, Stevens, Inc. had sales of $400

Last year, Stevens, Inc. had sales of $400,000 with a cost of goods sold of $112,000. The firm’s operating expenses were $130,000, and its increase in retained earnings was $58,000. There are currentl...

Q: Chang, Inc.’s balance sheet shows a stockholders’ equity-

Chang, Inc.’s balance sheet shows a stockholders’ equity-book value (total common equity) of $750,500. The firm’s earnings per share is $3, resulting in a price/ earnings ratio of 12.25X. There are 50...

Q: The Allen Marble Company has a target current ratio of 2.

The Allen Marble Company has a target current ratio of 2.0 but has experienced some difficulties financing its expanding sales in the past few months. At present, the firm has current assets of $2.5 m...

Q: The balance sheet and income statement for the A. Thiel Mfg

The balance sheet and income statement for the A. Thiel Mfg. Company are as follows: Balance Sheet………………………………………………………. ($000) Cash …………………………………………….………………………...$ 500 Accounts receivable…………………………...