SHOW WORK PLEASE

USE THE FOLLOWING INFORMATION FOR QUESTION 1:

Data for BikeNet Logistics most recent balance sheet and income statement is presented below:
Sales	$723,000
Cost of goods sold	614,550
Interest expense	33,000
Net income	$ 75,450
Cash & Mkt securities	$ 120,000
Accts Receivables	210,000		Accounts payable	$ 92,000
Inventories	183,000
			Long-term debt	100,000
Net fixed assets	320,000		Common equity	641,000
Total assets	$833,000		Total liab. and equity	$833,000

1. Compute BikeNets quick ration ( and times-interest-earned (TIE) ratio:

A) Quick: 1.47, TIE 3.03

B) Quick: 3.30, TIE 2.29

C) Quick: 5.13, TIE 3.03

D) Quick: 8.33, TIE 2.29

USE THE FOLLOWING INFORMATION FOR QUESTIONS 2-3:

Pinsons Heat Pump Installations started the year with total assets of $90,000, total liabilities of $30,000, and retained earnings of $51,000. During the year, the business recorded $50,000 in installation revenues, $41,000 in expenses, and the company paid dividends of $5,000. The company did not make any additional investments during the year. Ignore taxes.

2. The net income reported by Pinsons Heat Pump Installations for the year was:

A) $3,500

B) $5,500

C) $9,000

D) $14,000

E) None of the above

3. Pinsons return on assets (ROA) at the end of the year was:

A) 3.9%

B) 6.1%

C) 10.0%

D) 15.9%

E) 18.0%