Reference no: EM132519489

Question 1) Gardial & Son has an ROA of 13%, a 4% profit margin, and a return on equity equal to 18%. What is the company's total assets turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal place

-Total assets turnover:

-Equity multiplier

Question 2) Ace Industries has current assets equal to $7 million. The company's current ratio is 2.5, and its quick ratio is 1.8. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar.

-Current liabilities

-Inventories

Question 3) Assume you are given the following relationships for the Haslam Corporation:

Sales/total assets 1.3 Return on assets (ROA) 4% Return on equity (ROE) 5%

Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations.

Profit margin

Liabilities-to-assets ratio: %

Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places

Question 4) The Nelson Company has $1,137,500 in current assets and $455,000 in current liabilities. Its initial inventory level is $325,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.0? Do not round intermediate calculations. Round your answer to the nearest dollar.

What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Round your answer to two decimal places.

Question 5) The Morrit Corporation has $450,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sales are $3 million, its average tax rate is 25%, and its net profit margin on sales is 7%. If the company does not maintain a TIE ratio of at least 4 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.