Products Key Ratios
Table 3.2
Dana Dairy Products Key Ratios
‘ align=middle v:shapes=”_x0000_i1025″>
Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010
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Balance Sheet
Dana Dairy Products
December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q22g3.gif
The inventory management at Dana Dairy Products ________ since 2009. (See Table 3.2)
Answer
[removed]
has deteriorated
[removed]
remained the same
[removed]
has improved slightly
[removed]
cannot be determined
Question 2
Table 3.2
Dana Dairy Products Key Ratios
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Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g2.gif
Balance Sheet
Dana Dairy Products
December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g3.gif
If Dana Dairy Products has credit terms which specify that accounts receivable should be paid in 25 days, the average collection period ________ since 2009. (See Table 3.2)
Answer
[removed]
has deteriorated
[removed]
remained the same
[removed]
has improved
[removed]
cannot be determined
Question 3
Table 3.2
Dana Dairy Products Key Ratios
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q30g1.gif
Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q30g2.gif
Balance Sheet
Dana Dairy Products
December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q30g3.gif
The return on equity for Dana Dairy Products for 2010 was ________. (See Table 3.2)
Answer
[removed]
0.6 percent
[removed]
5.6 percent
[removed]
0.9 percent
[removed]
50 percent
Q4
Table 3.2
Dana Dairy Products Key Ratios
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g1.gif
Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g2.gif
Balance Sheet
Dana Dairy Products
December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g3.gif
The current ratio for Dana Dairy Products in 2010 was ________. (See Table 3.2)
Answer
[removed]
1.58
[removed]
0.63
[removed]
1.10
[removed]
0.91
Q5
Table 3.2
Dana Dairy Products Key Ratios
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g1.gif
Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g2.gif
Balance Sheet
Dana Dairy Products
December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g3.gif
Since 2009, the liquidity of Dana Dairy Products ________. (See Table 3.2)
Answer
[removed]
has deteriorated
[removed]
remained the same
[removed]
has improved
[removed]
cannot be determined
Q6
Table 3.2
Dana Dairy Products Key Ratios
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g1.gif
Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g2.gif
Balance Sheet
Dana Dairy Products
December 31, 2010
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f18g1q24g3.gif
Using the modified DuPont formula allows the analyst to break Dana Dairy Products return on equity into 3 components: the net profit margin, the total asset turnover, and a measure of leverage (the financial leverage multiplier). Which of the following mathematical expressions represents the modified DuPont formula relative to Dana Dairy Products’ 2010 performance? (See Table 3.2)
Answer
[removed]
5.6(ROE) = 2.5(ROA) x 2.24(Financial leverage multiplier)
[removed]
5.6(ROE) = 3.3(ROA) x 1.70(Financial leverage multiplier)
[removed]
4.0(ROE) = 2.0(ROA) x 2.00(Financial leverage multiplier)
[removed]
2.5(ROE) = 5.6(ROA) x 0.44(Financial leverage multiplier)
Question 7
You are given the following information: Stockholders’ equity = $1,250; price/earnings ratio = 5; shares outstanding = 25; and market/book ratio = 1.5. Calculate the market price of a share of the company’s stock.
$ 33.33
b. $ 75.00
c. $ 10.00
d. $166.67
e. $133.32
Question 8
Calculate net operating profit after taxes (NOPAT) if a firm has sales of $1,000,000, operating profit (EBIT) of $100,000, interest expense of $50,000, and a tax rate of 30%.
Answer
[removed]
$35,000
[removed]
$700,000
[removed]
$70,000
[removed]
None of these
Question 9
A firm had year end 2004 and 2005 retained earnings balance of $670,000 and $560,000, respectively. The firm reported net profits after taxes of $100,000 in 2005. The firm paid dividends in 2005 of ________.
Answer
[removed]
$10,000
[removed]
$100,000
[removed]
$110,000
[removed]
$210,000
Question 10
Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010
*https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f20g1q35g1.gif
The firm ________ fixed assets worth ________. (See Table 4.1)
Answer
[removed]
purchased; $0
[removed]
purchased; $200
[removed]
sold; $0
[removed]
sold; $200
Question 11
In its recent income statement, a firm reported $25 million of net income, and in its year-end balance sheet, the firm reported $405 million of retained earnings. The previous year, its balance sheet showed $390 million of retained earnings. What were the total dividends paid to shareholders during the most recent year?
Answer
[removed]
$ 3,500,000
[removed]
$ 5,000,000
[removed]
$ 6,750,000
[removed]
$10,000,000
[removed]
$11,250,000
Question 12
On its 2009 balance sheet, a firm had retained earnings equal to $510 million. On its 2010 balance sheet, retained earnings were also equal to $510 million. Which of the following statements is most correct?
Answer
[removed]
The company must have had net income equal to zero in 2010.
[removed]
The company did not pay dividends in 2010.
[removed]
If the company’s net income in 2010 was $200 million, dividends paid must have also equaled $200 million.
[removed]
If the company lost money in 2010, they must have paid dividends.
[removed]
None of the statements above is correct.
uestion 13
The average tax rate of a corporation with pretax income of $105,000 and a tax liability of $24,200 is
Answer
[removed]
46 percent.
[removed]
23 percent.
[removed]
34 percent.
[removed]
15 percent.
Question 14
Table 3.1
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f16g1q12g1.gif
Information (2010 values)
1. Sales totaled $110,000
2. The gross profit margin was 25 percent.
3. Inventory turnover was 3.0.
4. There are 360 days in the year.
5. The average collection period was 65 days.
6. The current ratio was 2.40.
7. The total asset turnover was 1.13.
8. The debt ratio was 53.8 percent.
Inventory for CEE in 2010 was ________. (See Table 3.1)
Answer
[removed]
$36,667
[removed]
$32,448
[removed]
$27,500
[removed]
$ 9,167
Question 15
Table 3.1
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f16g1q12g1.gif
Information (2010 values)
1. Sales totaled $110,000
2. The gross profit margin was 25 percent.
3. Inventory turnover was 3.0.
4. There are 360 days in the year.
5. The average collection period was 65 days.
6. The current ratio was 2.40.
7. The total asset turnover was 1.13.
8. The debt ratio was 53.8 percent.
Total assets for CEE in 2002 were:
A) $58 603
B) $45 895
C) $97 345
D) $124 300
Question 16
Table 3.1
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f16g1q12g1.gif
Information (2010 values)
1. Sales totaled $110,000
2. The gross profit margin was 25 percent.
3. Inventory turnover was 3.0.
4. There are 360 days in the year.
5. The average collection period was 65 days.
6. The current ratio was 2.40.
7. The total asset turnover was 1.13.
8. The debt ratio was 53.8 percent.
Accounts receivable for CEE in 2010 was ________. (See Table 3.1)
Answer
[removed]
$14,056
[removed]
$19,861
[removed]
$14,895
[removed]
$18,333
Question 17
A firm had the following accounts and financial data for 2005:
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f13g1q52g1.gif
The firm’s earnings per share, rounded to the nearest cent, for 2005 was ________.
Answer
[removed]
$0.5335
[removed]
$0.5125
[removed]
$0.3204
[removed]
$0.3024
Question 18
A firm had the following accounts and financial data for 2005.
https://blackboard.uncg.edu/courses/1/FIN-315-01D-FALL2013/ppg/pearson/tm/pmfbr6g/f13g1q51g1.gif
The firm’s earnings available to common shareholders for 2005 were ________.
Answer
[removed]
-$224.25
[removed]
$195.40
[removed]
$302.40
[removed]
$516.60
Question 19
Calculate a firm’s free cash flow if it has net operating profit after taxes of $60,000, depreciation expense of $10,000, net fixed asset investment requirement of $40,000, a net current asset requirement of $30,000 and a tax rate of 30%.
Answer
[removed]
$0
[removed]
$30,000
[removed]
-$30,000
[removed]
None of these
Question 20
If Nico Corporation has annual purchases of $300,000 and accounts payable of $30,000, then average purchases per day are ________ and the average payment period is ________.
Answer
[removed]
36.5; 821.9
[removed]
36.0; 833.3
[removed]
821.9; 36.5
[removed]
833.3; 36.0
attachment
fin_315_exam_1.docx
