FIN 100 WEEK 3 – QUIZ 2 CHAPTERS 3, 4, AND 5

FIN 100 WEEK 3 – QUIZ 2 CHAPTERS 3, 4, AND 5

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You are evaluating the balance sheet for PattyCake’s Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000; accounts receivable = $1,200,000; inventory = $2,100,000; accrued wages and taxes = $500,000; accounts payable = $800,000; and notes payable = $600,000.

Debt Management Ratios Trina’s Trikes, Inc. reported a debt-to-equity ratio of 1.81 times at the end of 2008. If the firm’s total debt at year-end was $9.00 million, how much equity does Trina’s Trikes have?
Loan amortization schedules show:
Approximately what interest rate is needed to double an investment over four years?
Which ratio measures a firm’s ability to pay short-term obligations with its available cash and market securities?
DuPont Analysis If Epic, Inc. has an ROE = 32%, equity multiplier = 3.3, a profit margin of 12.7%, what is the total asset turnover ratio? (Round your answer to 4 decimal places.)
We call the process of earning interest on both the original deposit and on the earlier interest payments:
A deposit of $300 earns interest rates of 7 percent in the first year and 10 percent in the second year. What would be the second year future value?
A deposit of $300 earns interest rates of 7 percent in the first year and 10 percent in the second year. What would be the second year future value?
To compute the present or future value of an annuity due, one computes the value of an ordinary annuity and then:
What is the present value, when interest rates are 6.5 percent, of a $100 payment made every year forever?
Which of the following refers to the amount of debt versus equity a firm has on its balance sheet?
What is the present value of a $200 payment made in 3 years when the discount rate is 8 percent?
Asset Management Ratios Corn Products, Corp. ended the year 2008 with...

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