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Quiz 12
1. Excerpts from TPX Company’s December 31, 2021 and 2020, financial statements are presented below:
TPX Company’s 2021 debt to equity ratio is:
Multiple Choice
8.52%.
73.49%.
14.46%.
30.38%.
2. Richard’s Sporting Goods reports net income of $170,000, net sales of $590,000, and average assets of $1,400,000. The return on assets is:
42.1%.
28.8%.
3.5 times.
12.1%.
3. Excerpts from TPX Company’s December 31, 2021 and 2020, financial statements are presented below:
TPX Company’s 2021 inventory turnover is: (Round your answer to 1 decimal place.)
5.4 times.
3.1 times.
5.7 times.
2.9 times.
4. Excerpts from Stealth Company’s December 31, 2021 and 2020, financial statements are presented below:
Stealth Company’s 2021 receivables turnover ratio is:
6.68 times.
4.14 times.
5.18 times.
14.75 times.
5. Given the information below, what is the company’s gross profit?
$60,000.
$39,000.
$304,000.
$37,000.
6. Richard’s Sporting Goods reports net income of $170,000, net sales of $550,000, and average assets of $1,700,000. The profit margin is:
30.9%.
4.2 times.
11.0%.
33.4%.
7. ‘ A partial balance sheet for Captain D’s Sportswear is shown below.
(dollars in thousands)
The debt to equity ratio is: (Round your answer to 2 decimal places.)
2.21.
0.93.
0.56.
1.25.
8. Excerpts from TPX Company’s December 31, 2021 and 2020, financial statements are presented below:
TPX Company’s 2021 profit margin is: (Round your answer to 1 decimal place.)
17.4%.
10.1%.
3.0%.
1.5%.
9. Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below:
HHF’s times interest earned ratio is: (Round your answer to 2 decimal places.)
10.00.
4.44.
3.44.
2.61.
10. Excerpts from Stealth Company’s December 31, 2021 and 2020, financial statements are presented below:
Stealth Company’s 2021 debt to equity ratio is: (Round your answer to 1 decimal place.)
75.3%.
43.8%.
93.4%.
60.1%.
Quiz 12 Answers
2. Richard’s Sporting Goods reports net income of $170,000, net sales of $590,000, and average assets of $1,400,000. The return on assets is:
42.1%.
28.8%.
3.5 times.
12.1%.
Answer: 12.1%.
Explanation: $170,000/$1,400,000 = 12.1%.