QUESTION 26 . A fire has destroyed a large percentage of the financial records of the Strongwell Co. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 13.8 percent. Sales were $979,000, the total debt ratio was 0.42, and total debt was $548,000. What is the return on assets? . . . 6.92 percent . . . 8.00 percent . . . 8.45 percent . . . 9.03 percent . . . 9.29 percent . 2 points   QUESTION 27 . Which one of the following occupations best fits into the international area of finance? . . . Bank teller . . . Treasury bill analyst . . . Currency trader . . . Insurance risk manager . . . Local bank manager . 2 points   QUESTION 28 . True Blue Transport has a current stock price of $27. For the past year, the company had net income of $2,187,400, total equity of $13,892,300, sales of $26,511,000, and 2.5 million shares outstanding. What is the market-to-book ratio? . . . 3.54 . . . 3.81 . . . 3.99 . . . 4.27 . . . 4.86 . 2 points   QUESTION 29 . Adell Furniture has a profit margin of 8.2 percent and a dividend payout ratio of 40 percent. What is the plowback ratio? . . . 8.20 percent . . . 27.33 percent . . . 54.60 percent . . . 60.00 percent . . . 68.20 percent . 2 points   QUESTION 30 . The Medicine Shoppe has a return on equity of 19.2 percent, a profit margin of 11.6 percent, and total equity of $738,000. What is the net income? . . . $85,608 . . . $113,875 . . . $141,696 . . . $146,542 . . . $149,897 . 2 points   QUESTION 31 . Andersen's Nursery has sales of $318,400, costs of $199,400, depreciation expense of $28,600, interest expense of $1,100, and a tax rate of 34 percent. The firm paid out $16,500 in dividends. What is the addition to retained earnings? . . . $36,909 . . . $42,438 . . . $44,141 . . . $47,208 . . . $47,615 . 2 points   QUESTION 32 . Which one of the following is a working capital decision? . . . How should the firm raise additional capital to fund its expansion? . . . What debt-equity ratio is best suited to the firm? . . . What is the cost of debt financing? . . . Which type of debt is best suited to finance the inventory? . . . How much cash should the firm keep in reserve? . 2 points   QUESTION 33 . Earth Fare Foods has total assets of $229,800, net fixed assets of $71,500, long-term debt of $52,000, and total debt of $78,700. If inventory is $45,000, what is the current ratio? . . . 0.20 . . . 0.46 . . . 0.84 . . . 1.18 . . . 5.93 . 2 points   QUESTION 34 . Your firm has cash of $3,800, accounts receivable of $8,600, inventory of $33,100, and net working capital of $1,100. What is the cash ratio? . . . 0.08 . . . 0.09 . . ...

1. QUESTION 26
.
A fire has destroyed a large percentage of the financial records
of the Strongwell Co. You have the task of piecing together
information in order to release a financial report. You have
found the return on equity to be 13.8 percent. Sales were
$979,000, the total debt ratio was 0.42, and total debt was
$548,000. What is the return on assets?
.
.
.
6.92 percent
.
.
.
8.00 percent
.

2. .
.
8.45 percent
.
.
.
9.03 percent
.
.
.
9.29 percent
.
2 points
QUESTION 27

3. .
Which one of the following occupations best fits into the
international area of finance?
.
.
.
Bank teller
.
.
.
Treasury bill analyst
.
.
.
Currency trader
.

4. .
.
Insurance risk manager
.
.
.
Local bank manager
.
2 points
QUESTION 28
.
True Blue Transport has a current stock price of $27. For the
past year, the company had net income of $2,187,400, total
equity of $13,892,300, sales of $26,511,000, and 2.5 million
shares outstanding. What is the market-to-book ratio?
.

5. .
.
3.54
.
.
.
3.81
.
.
.
3.99
.
.
.
4.27

6. .
.
.
4.86
.
2 points
QUESTION 29
.
Adell Furniture has a profit margin of 8.2 percent and a
dividend payout ratio of 40 percent. What is the plowback ratio?
.
.
.
8.20 percent
.

7. .
.
27.33 percent
.
.
.
54.60 percent
.
.
.
60.00 percent
.
.
.
68.20 percent

8. .
2 points
QUESTION 30
.
The Medicine Shoppe has a return on equity of 19.2 percent, a
profit margin of 11.6 percent, and total equity of $738,000.
What is the net income?
.
.
.
$85,608
.
.
.
$113,875

9. .
.
.
$141,696
.
.
.
$146,542
.
.
.
$149,897
.
2 points

10. QUESTION 31
.
Andersen's Nursery has sales of $318,400, costs of $199,400,
depreciation expense of $28,600, interest expense of $1,100,
and a tax rate of 34 percent. The firm paid out $16,500 in
dividends. What is the addition to retained earnings?
.
.
.
$36,909
.
.
.
$42,438
.
.
.

11. $44,141
.
.
.
$47,208
.
.
.
$47,615
.
2 points
QUESTION 32
.
Which one of the following is a working capital decision?
.

12. .
.
How should the firm raise additional capital to fund its
expansion?
.
.
.
What debt-equity ratio is best suited to the firm?
.
.
.
What is the cost of debt financing?
.
.

13. .
Which type of debt is best suited to finance the inventory?
.
.
.
How much cash should the firm keep in reserve?
.
2 points
QUESTION 33
.
Earth Fare Foods has total assets of $229,800, net fixed assets
of $71,500, long-term debt of $52,000, and total debt of
$78,700. If inventory is $45,000, what is the current ratio?
.
.
.
0.20

14. .
.
.
0.46
.
.
.
0.84
.
.
.
1.18
.
.

15. .
5.93
.
2 points
QUESTION 34
.
Your firm has cash of $3,800, accounts receivable of $8,600,
inventory of $33,100, and net working capital of $1,100. What
is the cash ratio?
.
.
.
0.08
.
.

16. .
0.09
.
.
.
0.90
.
.
.
1.21
.
.
.
3.45
.

17. 2 points
QUESTION 35
.
Baugh and Essary reports the following account balances:
inventory of $17,600, equipment of $128,300, accounts payable
of $24,700, cash of $11,900, and accounts receivable of
$31,900. What is the amount of the current assets?
.
.
.
$46,700
.
.
.
$56,000
.

18. .
.
$61,400
.
.
.
$175,000
.
.
.
$199,700
.
2 points
QUESTION 36

19. .
Will and Bill both enjoy sunshine, water, and surfboards. Thus,
the two friends decided to create a business together renting
surfboards, paddle boats, and inflatable devices in California.
Will and Bill will equally share in the decision making and in
the profits or losses. Which type of business did they create if
they both have full personal liability for the firm's debts?
.
.
.
Sole proprietorship
.
.
.
Limited partnership
.
.
.
Corporation

20. .
.
.
Joint stock company
.
.
.
General partnership
.
2 points
QUESTION 37
.
Underwood Homes Sales has total assets of $589,900 and total
debt of $318,000. What is the equity multiplier?
.

21. .
.
0.46
.
.
.
0.54
.
.
.
1.21
.
.
.

22. 1.85
.
.
.
2.17
.
2 points
QUESTION 38
.
Maria is the sole proprietor of an antique store that she has
operated at the same location for the past 16 years. The store
rents the space in which it is located but does own all of the
inventory and fixtures. The store has an outstanding loan with
the local bank but no other debt obligations. There are no
specific loan covenants or assets pledged as security for the
loan. Due to a sudden and unexpected downturn in the economy,
the store is unable to generate sufficient funds to pay the loan
payments due to the bank. Which of the following options does
the bank have to collect the money it is owed?
.

23. .
I. Sell the inventory and use the cash raised to apply to the debt
.
II. Sell the store fixtures and use the cash raised to apply to the
debt
.
III. Take funds from Maria‘s personal account at the bank to
pay the store‘s debt
.
IV. Sell any assets Maria personally owns and apply the
proceeds to the store‘s debt
.
.
.
I only
.
.

24. .
III only
.
.
.
I and II only
.
.
.
I, II, and III only
.
.
.
I, II, III, and IV
.

25. 2 points
QUESTION 39
.
The Blue Lagoon has a return on equity of 18.9 percent, an
equity multiplier of 1.9, and a total asset turnover of 1.45. What
is the profit margin?
.
.
.
2.76 percent
.
.
.
3.57 percent
.

26. .
.
4.90 percent
.
.
.
6.85 percent
.
.
.
14.60 percent
.
2 points
QUESTION 40

27. .
The Carpentry Shop has sales of $398,600, costs of $254,800,
depreciation expense of $26,400, interest expense of $1,600,
and a tax rate of 34 percent. What is the net income for this
firm?
.
.
.
$61,930
.
.
.
$66,211
.
.
.
$67,516

28. .
.
.
$76,428
.
.
.
$83,219
.
2 points
QUESTION 41
.
Whole Foods has a book value per share of $13.50, earnings per
share of $1.21, and a price-earnings ratio of 17.6. What is the
market-to-book ratio?
.

29. .
.
1.08
.
.
.
1.58
.
.
.
1.99
.
.
.
2.47

30. .
.
.
11.16
.
2 points
QUESTION 42
.
Bama & Co. owes a total of $21,684 in taxes for this year. The
taxable income is $61,509. If the firm earns $100 more in
income, it will owe an additional $56 in taxes. What is the
average tax rate on income of $71,609?
.
.
.
28.00 percent

31. .
.
.
30.33 percent
.
.
.
33.33 percent
.
.
.
35.00 percent
.
.

32. .
35.29 percent
.
2 points
QUESTION 43
.
Which one of the following situations is most apt to create an
agency conflict?
.
.
.
Compensating a manager based on his or her division's net
income
.
.
.

33. Giving all employees a bonus if a certain level of efficiency is
maintained
.
.
.
Hiring an independent consultant to study the operating
efficiency of the firm
.
.
.
Rejecting a profitable project to protect employee jobs
.
.
.
Selling an underproducing segment of the firm
.

34. 2 points
QUESTION 44
.
Which one of the following will increase the cash flow from
assets for a tax-paying firm, all else constant?
.
.
.
An increase in net capital spending
.
.
.
A decrease in the cash flow to creditors
.
.

35. .
An increase in depreciation
.
.
.
An increase in the change in net working capital
.
.
.
A decrease in dividends paid
.
2 points
QUESTION 45
.

36. Which one of the following is most apt to align management's
priorities with shareholders' interests?
.
.
.
Increasing employee retirement benefits
.
.
.
Compensating managers with shares of stock that must be held
for three years before the shares can be sold
.
.
.
Allowing a manager to decorate his or her own office once he or
she has been in that office for a period of three years or more
.

37. .
.
Increasing the number of paid holidays that long-term
employees are entitled to receive
.
.
.
Allowing employees to retire early with full retirement benefits
.
2 points
QUESTION 46
.
Donner United has total owners' equity of $18,800. The firm has
current assets of $23,100, current liabilities of $12,200, and
total assets of $36,400. What is the value of the long-term debt?
.

38. .
.
$5,400
.
.
.
$12,500
.
.
.
$13,700
.
.
.
$29,800

39. .
.
.
$43,000
.
2 points
QUESTION 47
.
The recognition principle states that:
.
.
.
costs should be recorded on the income statement whenever
those costs can be reliably determined.
.

40. .
.
costs should be recorded when paid.
.
.
.
the costs of producing an item should be recorded when the sale
of that item is recorded as revenue.
.
.
.
sales should be recorded when the payment for that sale is
received.
.
.

41. .
sales should be recorded when the earnings process is virtually
completed and the value of the sale can be determined.
.
2 points
QUESTION 48
.
Which one of the following will increase the profit margin of a
firm, all else constant?
.
.
.
Increase in interest paid
.
.
.

42. Increase in fixed costs
.
.
.
Increase in depreciation expense
.
.
.
Decrease in the tax rate
.
.
.
Decrease in sales
.

43. 2 points
QUESTION 49
.
The balance sheet of a firm shows current liabilities of $56,300
and long-term debt of $289,200 as of last year. Current
liabilities are $76,900 and long-term debt is $248,750 as of
today, which is the end of the current year. The financial
statements for the current year reflect an interest paid amount of
$29,700 and dividends of $19,000. What is the amount of the
net new borrowing?
.
.
.
-$40,450
.
.
.
$40,450
.

44. .
.
$64,750
.
.
.
$70,150
.
.
.
$78,250
.
2 points
QUESTION 50

45. .
The Berry Patch has sales of $438,000, cost of goods sold of
$369,000, depreciation of $37,400, and interest expense of
$13,800. The tax rate is 35 percent. What is the times interest
earned ratio?
.
.
.
2.29
.
.
.
3.46
.
.
.
3.87

46. .
.
.
4.38
.
.
.
4.79
.
· Assignment 1: Whistleblowing and Sarbanes-Oxley Due
Use the Internet or Strayer Library to research instances of
whistleblowing in publicly traded companies within the last 12
months.
Write a (3-4) page paper in which you:
1. Describe the key characteristics of a whistleblower, and
briefly summarize one (1) researched instance of
whistleblowing in one (1) publicly traded company within the

47. last 12 months. Include the details of the issue that the
whistleblower reported and the effect of the whistleblower’s
actions on both the whistleblower himself and the company.
2. Decide whether or not the whistleblower was justified in
reporting the company’s actions. Provide a rationale for your
response.
3. Examine the extent to which the whistleblower would be
protected under the Sarbanes-Oxley Act. Justify your response.
4. Use at least two (2) quality resources in this assignment.
Note: Wikipedia is not an acceptable reference and proprietary
Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
. Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; citations and references
must follow APA or school-specific format. Check with your
professor for any additional instructions.
. Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this
assignment are:
. Determine the underlying causes for passage of the Sarbanes-
Oxley Act and determine protections afforded to
whistleblowers.
. Use technology and information resources to research issues in
law, ethics, and corporate governance.
. Write clearly and concisely about law, ethics, and corporate
governance using proper writing mechanics.
Turnitin report that will be used (fresh work) NO PLAGIARISM