Exhibit 14 -Refer to Exhibit 14

question 32

Multiple Choice

Exhibit 14.9
Use the Information Below for the Following Problem(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted)
$\begin{array}{lr}\text { Sales } & 5,450 \\\text { Cost of Goods Sold } & \underline{3,250} \\\text { Gross Profit } & 2,200 \\\text { Depreciation } & 820 \\\text { Operating Expenses } & 470 \\\text { Administration Exp. } & \underline{115} \\ \text { Operating Profit } 795 & \\\text { Interest Expense } & \underline{88}\\\text { Profit Before Taxes } & 707\\\text { Taxes } & \underline{247}\\\text { Net Income } & 460\\\text{Dividends} & 250\end{array}$
$\begin{array}{lrlr}\text { Assets } & & {\text { Liabilities }} \\\text { Cash } & 100 & \text { Notes Payable } & 850 \\\text { Accounts Receivable } & 1,250 & \text { Accounts Payable } & \underline{1,550} \\\text { Inventory } & \underline{1,125} & \text { Total Current Liab. } & 2,400 \\\text { Total Current Assets } & 2,475 & \text { Long Term Debt } & 425 \\\text { Net Fixed Assets } & \underline{1,450} & \text { Common Stock } & 400 \\\text { Total Assets } & 3,925 & \text { Retained Earnings } & \underline{700} \\& & \text { Total Liab. \& Earnings } & 3,925\end{array}$
-Refer to Exhibit 14.9.Calculate Rollerball Corporation's Total Assets/Equity ratio.

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Definitions:

Chi-square Statistic

A statistic that measures the difference between observed frequencies in a sample and the frequencies that would be expected by chance.

Null Hypothesis

A statement that there is no effect or no difference, and it is the statement being tested in statistical hypothesis testing.

Economic Concerns

Issues related to the health and functioning of an economy, including inflation, unemployment, and GDP growth.

Distribution

The spread of values within a dataset or the pattern showing how often each value occurs.