Question

1. Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compute the gross profit percentage to the nearest hundredth of a percent.

Net income	Gross profit on sales	Average total assets	Sales	Tax rate on operating profit
$69,960	$700,400	$360,600	$1,356,504	35%

Select one:

A. 5.16%

B. 9.99%

C. 51.63%

D. 33.56%

2. Which ratio can provide an indication of the salability of the company's products?

Select one:

A. Current ratio

B. Account receivable turnover

C. Gross profit margin

D. Inventory turnover

3. Which of the following is one measure of liquidity?

Select one:

A. Debt-to-equity ratio

B. Times-interest-earned ratio

C. Quick ratio

D. None of the above

4. Krogen Grocer's 2016 balance sheet shows average stockholders’ equity of $12,000 million, net operating profit after tax of $1,140million, net income of $380 million, and common shares issued of $1,916 million.

The company has no preferred shares issued. Krogen Grocer’s return on common stockholders’ equity for the year is:

Select one:

A. 9.50%

B. 15.97%

C. 6.33%

D. 3.17%

..

Answer 1

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