University of Texas, Permian Basin

FINA 6320

Quiz 1

1)A business entity operated and taxed like a partnership, but with limited liability for the owners, is called a:

2. A firm has net working capital of $600, net fixed assets of $2,400, sales of $8,000, and current liabilities of $800. How many dollars worth of sales are generated from every $1 in total assets? Is the firm more or less efficient than its competitor that has a total asset turnover of 2.45?

3. A firm has sales of $1,500, net income of $100, total assets of $1,000, and total equity of $700. Interest expense is

$50. What is the common-size statement value of the interest expense?

4. As seen on an income statement:

5. Enterprise value focused on:
6. If a firm produces a 10% return on assets and also a 10% return on equity, then the firm:

7. Mario's Home Systems has sales of $2,800, cost of goods sold of $2,100, inventory of $600, and accounts receivable of

$600. How many days, on average, does it take Mario's to sell its inventory? Is Mario more or less efficient than its competitors if the competitors sell in 78 days?

8. Moulton Incorporated has a 10% return on assets and a 20% dividend payout ratio. What is the internal growth rate?

9. Relationships determined from a firm's financial information and used for comparison purposes are known as:

10. Rosita's Restaurant has sales of $5,000, total debt of $1,300, total equity of $2,400, and a profit margin of 6%. What is the return on assets?