Using the information provided, what is the inventory turnover for the firm? (hint: average inventory is the sum of beginning and ending inventory divided by 2)

Perfect Purchase Electronics

Selected Income Statement Items, 2014

Cash Sales $1,500,000

Credit Sales $7,500,000

Total Sales $9,000,000

COGS $6,000,000

Perfect Purchase Electronics

Selected Balance Sheet Accounts

12/31/2014 12/31/2013 Change

Accounts Receivable $270,000 $240,000 $30,000

Inventory $125,000 $100,000 $25,000

Accounts Payable $110,000 $90,000 $20,000

60.00 times

53.33 times

23.53 times

48.00 times

Danielle's Paper Products Inc. has 2,400,000 outstanding shares of stock selling for $52 per share. After a 2-for-1 stock split, how many shares of stock are outstanding and what is the change in the firm value (given no new information)?

1,200,000 shares and a change in value of $0.00

1,200,000 shares and a change in value of $124,800,000

4,800,000 shares and a change in value of $0.00

4,800,000 shares and a change in value of $124,800,000

Stephanie owns the following portfolio of securities. What is the beta for the portfolio?

Company	Beta	Percent of Portfolio
Exxon-Mobil	.95	40%
Pacific Industries	1.20	35%
Payson Restaurants	1.35	25%

		0.9500
		1.1705
		1.0000
		1.1375

Stock A B C D

Expected Return 5% 5% 7% 6%

Standard Deviation 10% 12% 12% 11%

Which of the following statements is true?

		A is a better investment than B
		B is a better investment than C
		D is a better investment than C
		C is a better investment than D