Exhibit 14 -Refer to Exhibit 14

question 122

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 the sustainable growth rate for Rollerball Corporation.

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Definitions:

Embryonic Disk

A key structure in early embryonic development from which the embryo begins to form.

Ectoderm

The outermost layer of an embryo in early development, giving rise to the nervous system and external skin layers.

Hypoblast

The layer of cells inside the blastocyst (an early stage of the embryo), which contributes to the formation of the yolk sac and is involved in early embryonic development.

Epiblast

A layer of cells derived during the early development of an embryo, giving rise to all three primary germ layers.