St.

Columban College
College of Business Education
MIDTERM EXAM
Name : _______________________________________________
_______________
Course and Year : _______________________

Date:
Score: _______________

1. Calculate the Total Assets Turnover given that Sales = $1095 and Total
Assets = $1434.
2. Calculate the Current Ratio given that Current Assets = $937 and Current
Liabilities = $884.
3. Calculate the Debt to Equity Ratio given that Total Assets = $2136 and
Total Owners' Equity = $1114.
4. Calculate the Return on Assets (ROA) given that Net Income = $883 and
Total Assets = $1861.
5. Suppose that the inventory period is 50 days, the accounts receivable period
is 40 days, and the accounts payable period is 35 days. What is the cash
cycle? What is the Operating Cycle?
Balance Sheet ($ in Millions)
Income Statement ($ in
Assets
1999 Liabilities and 1999
Millions)
Owners' Equity
199
Current Assets
Current
9
Liabilities
Sales
1200
Cash
200 Accounts Payable 400 Cost of Goods Sold
900
Accounts
400 Notes Payable
400 Taxable Income
300
Receivable
Taxes
90
Inventory
600 Total Current
800 Net Income
210
Liabilities
Dividends
70
Total Current
1200 Long-Term
Addition to Retained
140
Assets
Liabilities
Earnings
Long-Term Debt 500
Fixed Assets
Total Long-Term 500 Dividend Pay-out Ratio
Liabilities
= Addition to Retained
Net Fixed
800 Owners' Equity
Earnings/
Assests
Net Income
Common Stock
300
($1 Par)
Retained Earnings 400
Total Owners'
700
Equity
Total Assets
2000 Total Liab. and 2000
Owners' Equity
Using the Balance Sheet and Income Statement above, determine the EFN given
that Fixed Assets are being utilized at full capacity and the forecasted growth rate
in Sales is 25%.

GOOD LUCK!