week 6 final question

Stokes, Inc. has net working capital of $7,900, current liabilities of $5,220, and inventory of $2,000. What is the quick ratio?•     1.21•     1.13•     1.89•     2.1You are considering a project with an initial cash outlay of $160,000 and expected free cash flows of $40,000 at the end of each year for 6 years. The required rate of return for this project is 10%. What is the project’s payback period?•     4.5 years•     4 years•     6 years•     5 yearsBill’s Billiards has total assets of $8 million and a total asset turnover of 2.9 times. If the return on assets is 11%, what is Bill’s profit margin?•     4.10%•     11%•     2.50%•     3.79Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $1,950,000, and the project would generate free cash flows of $450,000 per year for 6 years. The appropriate required rate of return is 9%. Calculate the net present value and the internal rate of return.•     NPV=$66,098, IRR=10.5•     NPV=$72,097, IRR=9.5•     NPV=$69,368, IRR=10•     NPV=$68,663, IRR=10.2Terry’s Trash removal has a total debt ratio of 0.45. What is the firm’s debt-to-equity ratio?•     1.27•     0.41•     0.82•     1.82For the most recent year, Cal’s Cats had sales of $380,000, cost of goods sold of $93,000, depreciation expense of $47,000, and additions to retained earnings of $61,420. The firm had $52,000 in interest expense, and 34% tax rate. What were the times interest earned ratio?•     4.61•     2.8•     2.2•     5.8Stokes, Inc. has net working capital of $7,900, current liabilities of $5,220, and inventory of $2,000. What is the current ratio?•     2.1•     1.51•     0.77•     1.89Brenda Smith, Inc. had a gross profit margin (gross profits ÷ sales) of 25% and sales of $9.75 million last year. Seventy-five percent of the firm’s sales are on credit and the remainder are cash sales. Smith’s current assets equal $1,550,000, its current liabilities equal $300,000, and it has $150,000 in cash plus marketable securities. If Smith’s accounts receivable are $562,500, what is its average collection period?•     28 days•     32 days•     25 days•     14 daysBob’s Garages has sales of $41 million, total assets of $32 million, and total debt of $11 million. If the profit margin is 12% what is the return on equity (ROE)?•     51%•     14%•     23.40%•     12%The R. M. Senchack Corporation earned an operating profit margin of 6% based on sales of $11 million and total assets of $6 million last year. What was Senchack’s total asset turnover ratio?•     5.4•     1.8•     1•     0.54