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Please refer to Table 4-3 for the following questions.

Table 4-3

Emery Corporation

Balance Sheet Income Statement

Assets:
Cash	$250,000		Sales (all credit)	$8,000,000
Accounts receivable	450,000		Cost of goods sold	(4,000,000)
Inventory	500,000		Operating expense	(2,900,000)
Net fixed assets	2,100,000		Interest expense	(150,000)
Total assets	$3,300,000		Income taxes	(380,000)
			Net income	$570,000
Liabilities and owners' equity:
Accounts payable	$100,000
Notes payable	450,000
Long-term debt	1,050,000
Owners' Equity	1,700,000
Total liabilities and owner's equity	$3,300,000

9) Based on the information in Table 4-3, the average collection period is

A) 38.01 days.

B) 27.36 days.

C) 20.53 days.

D) 17.49 days.

10) Based on the information in Table 4-3, the operating return on total assets is

A) 55.62%.

B) 10.06%.

C) 44.74%.

D) 33.33%.

11) Based on the information in Table 4-3, the operating profit margin is

A) 13.75%.

B) 18.59%.

C) 25.80%.

D) 33.33%.

12) Based on the information in Table 4-3, the total asset turnover is

A) 2.10 times.

B) 2.42 times.

C) 2.87 times.

D) 3.25 times.

13) Based on the information in Table 4-3, the debt ratio is

A) 18.38%.

B) 40.24%.

C) 48.48%.

D) 53.43%.

14) Based on the information in Table 4-3, the current and acid-test ratios are, respectively,

A) 2.37 and 1.39.

B) 2.37 and 1.27.

C) 2.18 and 1.39.

D) 2.18 and 1.27.

15) Based on the information in Table 4-3, assuming that the firm has no preferred stock, and paid $300,000 in common dividends, the firm's return on equity was

A) 79.43%.

B) 61.89%.

C) 43.34%.

D) 33.53%.

16) In addition to the information contained in Table 4-4, you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010. What is Wes Donnell's retained earnings balance for 2010?

A) $10,000

B) $8,000

C) $19,600

D) $2,600

17) In addition to the information contained in Table 4-4, you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010. What is Wes Donnell's inventory turnover for 2010?

A) 0.13

B) 11.1

C) 9.3

D) 7.78

18) In addition to the information contained in Table 4-4, you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010. What is Wes Donnell's total asset balance for 2010?

A) $42,500

B) $36,500

C) $38,500

D) $26,900

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Thank's Abdul-Rahim Taysir

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