单选题

Use the following data for Questions.
Bentlom Company's common sized financial statements show that:
Earnings after taxes 15 %
Current liabilities 20%
Equity 45 %
Sales $ 800
Cash 10%
Total assets $ 2000
Accounts receivable 15%
Inventory. 20%

单选题 Bentlom' s long-term debt-to-equity ratio and current ratio are closest to:

A、

A. 77.8% ;2.25.
B、

B. 98.2% ;2. 50.
C、

C. 98.2% ;2. 25.

【正确答案】 A

【答案解析】If equity equals 45% of assets and current liabilities equals 20%, long-term debt must be 35%. Debt-to-equity ratio = total long-term debt/total equity =0.35/0.45 = 0.778 = 78%. Current asset =0.1 +0.15 +0.20 =0.45. Current ratio = CA/CL =45%/20% =2.25.

单选题 Bentlom' s after-tax return on equity (ROE) is:

A、

A. 6.0%.
B、

B. 12.0%.
C、

C. 13.3%.

【正确答案】 C

【答案解析】ROE = EAT/Equity = (0.15)×(800)/(0.45)×(2000) =0.133 or 13.3%.