Online Quiz 17a

Question 1

Which ONE of the following is NOT one of the 3 DuPont framework dimensions?
  Assets-to-equity ratio (Leverage)
 Asset turnover (Efficiency)
 Current ratio (Liquidity)
 Return on sales (Profitability)

Answer 1

Answer: Current ratio (Liquidity)

Question 2

The data below are for Kylie Company. Use these same data for Questions 2, 3, 4, and 5.
Accounts Receivable 2,000
Advertising Expense 1,600
Cash 500
Cost of Goods Sold 13,000
Inventory 3,000
Property, Plant, and Equipment 6,000
R&D Expense 2,000
Sales 20,000
Total Equity 5,300
Total Liabilities 6,200
Wage Expense 2,300
Compute ASSET TURNOVER.
1.34
1.44
1.54
1.64
1.74

Answer 2

Answer: 1.74

Asset Turnover = Sales / Total assets

Question 3

The data below are for Kylie Company. Use these same data for Questions 2, 3, 4, and 5.
Accounts Receivable 2,000
Advertising Expense 1,600
Cash 500
Cost of Goods Sold 13,000
Inventory 3,000
Property, Plant, and Equipment 6,000
R&D Expense 2,000
Sales 20,000
Total Equity 5,300
Total Liabilities 6,200
Wage Expense 2,300
Compute RETURN ON EQUITY.
14.8%
16.8%
18.8%
20.8%
22.8%

Answer 3

Answer: 20.8%

Return on Equity = Net income / Stockholders’ equity

Question 4

The data below are for Kylie Company. Use these same data for Questions 2, 3, 4, and 5.
Accounts Receivable 2,000
Advertising Expense 1,600
Cash 500
Cost of Goods Sold 13,000
Inventory 3,000
Property, Plant, and Equipment 6,000
R&D Expense 2,000
Sales 20,000
Total Equity 5,300
Total Liabilities 6,200
Wage Expense 2,300
Compute RETURN ON SALES.
5.5%
6.5%
7.5%
8.5%
9.5%

Answer 4

Answer: 5.5%

Return on Sales = Net income / sales

Question 5

The data below are for Kylie Company. Use these same data for Questions 2, 3, 4, and 5.
Accounts Receivable 2,000
Advertising Expense 1,600
Cash 500
Cost of Goods Sold 13,000
Inventory 3,000
Property, Plant, and Equipment 6,000
R&D Expense 2,000
Sales 20,000
Total Equity 5,300
Total Liabilities 6,200
Wage Expense 2,300
Compute DEBT RATIO
48.9%
53.9%
58.9%
63.9%
68.9%

Answer 5

Answer: 53.9%

Debt ratio = Total liabilities / Total Assets