1. Crooked Gulfs most recent income statement shows that net income was $90,000 depreciation was $25,000 and taxes was $60,000. What was Crooked Gulfs net cashflow.

2. Credit card of America has a current ratio of 3.5 and a quick ratio of 3.0 if it’s total current assets equal $73,500 was are CCA current liabilities and inventory?

3. The balance sheet for POP shoes $300,000 in total assets and $200,000 in total liabilities . POP return on assets is 5. Compute POP net income for the year and its return on equity. POP has no preferred stock.

4. At the end of the year, Water Works International had $10,000 in total assets. It’s total assets turnover was 2.5, and its return on assets was 4%. What were WWI’s sales revenues and net profit margin?

5. Wiley’s Wilderness pays 6% interest on its outstanding debt, which equals $200,000. The companies sales are $540,000, its tax rate is 40%, and its net profit margin is 4% . What is Wiley’s TIE? If Wiley’s wants to maintain a TIE to 6.0, what must its sales equal?

6. Smitty’s Finger Licking BBQ has a total assets turnover equal to 2.0, a return on equity equal to 15%, and a debt ratio equal to 60%. If Smitty’s is financed with debt and common stock, what are its return on assets and net profit margin?

Answer rating: 100% (QA)

1 Net cash flow Net Income Depreciation 90000 25000 115000 2 Current liabilities 73500 35 21000 Quic... View the full answer