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• 5) Refer to the following selected financial information from McCormik, LLC. Compute the company's acid-test ratio for Year 2.

  	Year 2			Year 1
  Cash	$	37,600		$	32,350
  Short-term investments		91,000			60,500
  Accounts receivable, net		86,000			80,000
  Merchandise inventory		121,500			125,500
  Prepaid expenses		12,200			9,800
  Plant assets		388,500			338,500
  Accounts payable		112,900			108,300
  Net sales		711,500			676,500
  Cost of goods sold		390,500			375,500

  Multiple Choice

• 3.09.

• 1.90.

• 2.98.

• 2.01.

• 2.28.

  6) A corporation reported cash of $15,300 and total assets of $179,600 on its balance sheet. Its common-size percent for cash equals:

  Multiple Choice

• 6.52%.

• 8.52%.

• 13.90%.

• 11.74%.

• 20.42%.

  7)Martinez Corporation reported Net sales of $770,000 and Net income of $137,000. The Profit margin is:

  Multiple Choice

• 562.0%.

• 1.78%.

• 5.62%.

• 82.21%.

• 17.79%.

  8) A company reports basic earnings per share of $4.60, cash dividends per share of $1.80, and a market price per share of $65.30. The company's dividend yield equals:

  Multiple Choice

• 14.50%.

• 6.90%.

• 2.76%.

• 2.78%.

• 3.60%.

  9) Selected current year company information follows:

  Net income	$	17,753
  Net sales		730,855
  Total liabilities, beginning-year		101,932
  Total liabilities, end-of-year		121,201
  Total stockholders' equity, beginning-year		216,935
  Total stockholders' equity, end-of-year		148,851

  The return on total assets is (Do not round intermediate calculations.):

  Multiple Choice

• 2.48%.

• 2.71%.

• 2.29%.

• 2.43%.

• 6.03%.

  10) Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2.

  	Year 2		Year 1
  Net sales		$ 480,000		$ 426,550
  Cost of goods sold		276,600		250,420
  Interest expense		10,000		11,000
  Net income before tax		67,550		52,980
  Net income after tax		46,350		40,200
  Total assets		317,700		289,800
  Total liabilities		179,900		167,600
  Total equity		137,800		122,200

  Multiple Choice

• 16.8%.

• 9.7%.

• 14.1%.

• 11.7%.

• 33.6%.

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