In 1996, Snout and Smith, Inc. had a gross profit of $27,000 on sales of $110,000. S & S's operating expenses for 1996 were $13,000, and its net profit margin was .0585. Snout and Smith had no interest expense in 1996. Using this information, what was S & S's operating profit margin for 1996?
A) 0.245
B) 0.118
C) 0.127
D) 0.157
Sharky's Loan Co. has an annual interest expense of $30,000. If Sharky's times-interest-earned ratio is 2.9, what is Sharky's Earnings Before Taxes (EBT)?
A) $87,000
B) $57,000
C) $117,000
D) $60,000
Skrit Corporation has a net profit margin of 15% and a total asset turnover of 1.7. What is Skrit's return on total assets?
A) 12.3%
B) 25.5%
C) 8.8%
D) 11.1%
Sputter Motors has sales of $3,450,000, total assets of $1,240,000, cost of goods sold of $2,550,000, and an inventory turnover of 6.38. What is the amount of Sputter's inventory?
A) $421,054
B) $638,112
C) $543,000
D) $399,687
Which of the following is the best indicator of management's effectiveness at managing the firm's balance sheet?
A) Debt ratio
B) Total asset turnover
C) Times-interest-earned
D) Operating profit margin
Which of the following is the best indicator of management's effectiveness at generating profits relative to the firm's assets?
A) Quick ratio
B) Fixed assets turnover
C) Return on assets
D) Accounts receivable turnover
