1. The following selected financial data pertain to four unidentified companies:...

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Accounting

1.

The following selected financial data pertain to four unidentified companies:

COMPANIES

1 2 3 4
Balance Sheet Data
(component percentage)
Cash 3.5 4.7 8.2 11.7
Accounts receivable 16.9 28.9 16.8 51.9
Inventory 46.8 35.6 57.3 4.8
Property and equipment 18.3 21.7 7.6 18.7
Income Statement Data
(component percentage)
Gross profit 22.0 22.5 44.8 N/A*
Profit before taxes 2.1 0.7 1.2 3.2
Selected Ratios
Current ratio 1.3 1.5 1.6 1.2
Inventory turnover ratio 3.6 9.8 1.5 N/A*
Debt-to-equity ratio 2.6 2.6 3.2 3.2

*N/A = Not applicable.

Required:

Match each company with its financial information.

Companies
1 Car manufacturer
2
3
4 Advertising agency

2.

An Internet company earned $6.70 per share and paid dividends of $4.40 per share. The company reported a dividend yield of 4 percent. What was the price of the stock?

Price of the stock

3. Cintas designs, manufactures, and implements corporate identity uniform programs that it rents or sells to customers throughout the United States and Canada. The companys stock is traded on the NASDAQ and has provided investors with significant returns over the past few years. Selected information from the companys balance sheet follows. For 2012, the company reported sales revenue of $3,708,400 and cost of goods sold of $1,516,315.

CINTAS Balance Sheet (in thousands)
2012 2011
Cash $ 35,370 $ 38,915
Marketable securities 202,558
Accounts receivable 408,882 389,912
Inventories 231,754 198,002
Prepaid expense and other 15,782 15,782
Accounts payable 64,641 71,640
Accrued compensation and related liabilities 70,782 95,369
Accrued liabilities 263,523 239,078
Accrued tax liability 2,578
Long-term debt due within one year 4,153 26,653
Required:

Compute the current ratio, inventory turnover ratio, and accounts receivable turnover ratio (assuming that 70 percent of sales were on credit). (Round your answers to 1 decimal place.)

Current ratio
Inventory turnover ratio
Accounts receivable turnover ratio

4. Wildlife Co. reported net income of $12.30 million, interest expense of $0.66 million and is are in a 30% tax rate bracket. Wildlife's average total assets are $81.80 million and average stockholders' equity is $51.80 million. Wildlife's financial leverage percentage is closest to: (Do not round intermediate computations)

A. 9.0%

B. 8.7%

C. 7.9%

D. 8.1%

5. Rusty Corporation purchased a rust-inhibiting machine by paying $52,500 cash on the purchase date and agreeing to pay $10,500 every three months during the next two years. The first payment is due three months after the purchase date. Rusty's incremental borrowing rate is 12%. The liability reported on the balance sheet as of the purchase date, after the initial $52,500 payment was made, is closest to: (Table A.1, Table A.2, Table A.3, and Table A.4) (Use appropriate factor(s) from the tables provided.)

A. $84,000.

B. $73,707.

C. $136,500.

D. $126,207.

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