FM module 3 MCQ practice Question and answers already
passed 2025
1. Mario's Home Systems has sales of $2,830, costs
of goods sold of $2,170, inventory of $506, and 85.11 days
accounts receivable of $431. How many days, on
average, does it take Mario's to sell its inventory?
2. A firm has net working capital of $540, net fixed assets $1.77
of $2,286, sales of $6,500, and current liabilities of
$850. How many dollars worth of sales are
generated from every $1 in total assets?
3. Lee Sun's has sales of $3,700, total assets of
$3,400, and a profit margin of 4 percent. The firm 7.25 percent
has a total debt ratio of 40 percent. What is the
return on equity?
4. Jupiter Explorers has $9,800 in sales. The profit margin 17.45
is 5 percent. There are 4,500 shares of stock
outstand- ing. The market price per share is
$1.90. What is the price-earnings ratio?
5. Use the following information to answer this
ques- tion. 0.82
Windswept, Inc. 2010 Income Statement ($ in
millions)Net sales$ 9,320Less: Cost of goods
sold7,610Less: Depreciation
450
Earnings before interest and taxes$ 1,260Less:
Inter- est paid
98
Taxable Income$ 1,162Less: Taxes
407
Net income
$ 755
1/
3
passed 2025
1. Mario's Home Systems has sales of $2,830, costs
of goods sold of $2,170, inventory of $506, and 85.11 days
accounts receivable of $431. How many days, on
average, does it take Mario's to sell its inventory?
2. A firm has net working capital of $540, net fixed assets $1.77
of $2,286, sales of $6,500, and current liabilities of
$850. How many dollars worth of sales are
generated from every $1 in total assets?
3. Lee Sun's has sales of $3,700, total assets of
$3,400, and a profit margin of 4 percent. The firm 7.25 percent
has a total debt ratio of 40 percent. What is the
return on equity?
4. Jupiter Explorers has $9,800 in sales. The profit margin 17.45
is 5 percent. There are 4,500 shares of stock
outstand- ing. The market price per share is
$1.90. What is the price-earnings ratio?
5. Use the following information to answer this
ques- tion. 0.82
Windswept, Inc. 2010 Income Statement ($ in
millions)Net sales$ 9,320Less: Cost of goods
sold7,610Less: Depreciation
450
Earnings before interest and taxes$ 1,260Less:
Inter- est paid
98
Taxable Income$ 1,162Less: Taxes
407
Net income
$ 755
1/
3
