Information Use the following information to answer the next ten questions: MEGA
ID: 2629960 • Letter: I
Question
Information
Use the following information to answer the next ten questions:
MEGAFRAME COMPUTER COMPANY
Balance Sheet
As of December 31, 2006
ASSETS
Cash
$ 40,000
Accounts Receivable
60,000
Inventory
90,000
New Plant and Equipment
220,000
Total Assets
$410,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable
$ 60,000
Accrued Expenses
40,000
Long-Term debt
130,000
Common Stock
60,000
Paid-In capital
20,000
Retained earnings
100,000
Total Liabilities and Stockholders' Equity
$410,000
MEGAFRAME COMPUTER COMPANY
Income Statement
For the Year Ended December 31, 2006
Sales (all on credit)
$720,000
Cost of Goods Sold
500,000
Gross Profit
220,000
Sales and Administrative Expense
20,000
Depreciation
40,000
Operating Profit
160,000
Interest Expense
16,000
Profit before Taxes
144,000
Taxes (30%)
43,200
Net Income
$100,800
Printable Version
Question 32 (1 point)
Using the DuPont method, return on assets (investment) for Megaframe Computer is approximately
Question 32 options:
15%
25%
29%
35%
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Question 33 (1 point)
The firm's return on equity is
Question 33 options:
52.8%
55.6%
56.0%
100.0%
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Question 34 (1 point)
The firm's average collection period is
Question 34 options:
30 days.
25 days.
14.4 days.
20 days.
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Question 35 (1 point)
The firm's receivable turnover is
Question 35 options:
4.4x
10x
12x
14.4x
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Question 36 (1 point)
Megaframe's quick ratio is
Question 36 options:
2
1
1.6
10
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Question 37 (1 point)
Megaframe's current ratio is
Question 37 options:
1.9
1.625
1.5
3.2
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Question 38 (1 point)
What is Megaframe Computer's total asset turnover?
Question 38 options:
4.50x
3.6x
2x
1.76x
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Question 39 (1 point)
The firm's debt to asset ratio is
Question 39 options:
56.1%
47.22%
33.33%
none of the above
Save
Question 40 (1 point)
Times interest earned for Megaframe Computer is
Question 40 options:
4.5x
9x
11x
10x
MEGAFRAME COMPUTER COMPANY
Balance Sheet
As of December 31, 2006
ASSETS
Cash
$ 40,000
Accounts Receivable
60,000
Inventory
90,000
New Plant and Equipment
220,000
Total Assets
$410,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable
$ 60,000
Accrued Expenses
40,000
Long-Term debt
130,000
Common Stock
60,000
Paid-In capital
20,000
Retained earnings
100,000
Total Liabilities and Stockholders' Equity
$410,000
MEGAFRAME COMPUTER COMPANY
Income Statement
For the Year Ended December 31, 2006
Sales (all on credit)
$720,000
Cost of Goods Sold
500,000
Gross Profit
220,000
Sales and Administrative Expense
20,000
Depreciation
40,000
Operating Profit
160,000
Interest Expense
16,000
Profit before Taxes
144,000
Taxes (30%)
43,200
Net Income
$100,800
Explanation / Answer
Question 32 (1 point)
Using the DuPont method, return on assets (investment) for Megaframe Computer is approximately
Question 32 options:
15%
25%--------answer
29%
35%
-
Save
Question 33 (1 point)
The firm's return on equity is
Question 33 options:
52.8%
55.6%
56.0%--------answer
100.0%
Save
Question 34 (1 point)
The firm's average collection period is
Question 34 options:
30 days--------answer.
25 days.
14.4 days.
20 days.
Save
Question 35 (1 point)
The firm's receivable turnover is
Question 35 options:
4.4x
10x
12x--------answer
14.4x
Save
Question 36 (1 point)
Megaframe's quick ratio is
Question 36 options:
2
1--------answer
1.6
10
Save
Question 37 (1 point)
Megaframe's current ratio is
Question 37 options:
1.9--------answer
1.625
1.5
3.2
Save
Question 38 (1 point)
What is Megaframe Computer's total asset turnover?
Question 38 options:
4.50x
3.6x
2x
1.76x--------answer
Save
Question 39 (1 point)
The firm's debt to asset ratio is
Question 39 options:
56.1%--------answer
47.22%
33.33%
none of the above
Save
Question 40 (1 point)
Times interest earned for Megaframe Computer is
Question 40 options:
4.5x
9x
11x
10x--------answer
15%
25%--------answer
29%
35%