Exhibit 9-9
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 121

Multiple Choice

Exhibit 9-9
USE THE FOLLOWING INFORMATION FOR THE NEXT 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 12/31/2009.
(000s omitted)
$\begin{array}{lr} \text { Sales } &5,450 \\ \text { Cost of Goods Sold } &\underline {3,250 }\\ \text { Gross Profit } & 2,200 \\ \text {Depreciation } &820 \\ \text {Operating Expenses } &470 \\ \text { Administration Exp. } &\underline {115 }\\ \text {Operating Profit } & 795 \\ \text { Interest Expense } &\underline {88} \\ \text { Profit Before Taxes } & 707 \\ \text {Taxes } &\underline {247} \\ \text { Net Income } & 460 \\ \text {Dividende } &250\end{array}$ $\begin{array}{lrlr}\text { Assets } && {\text { Liabilities }} \\\hline \text { Cash } & 100 & \text { Notes Payable } & 850 \\\text { Accounts Receivable } & 1,250 & \text { Accounts Payable } & \underline{1,550} \\\text { Inventory } & \underline{1,125} & \text { Total Current Liab. } & {2,400}\\\text { Total Current Assets } & {2,475}&{\text { Long Term Debt }} & 425 \\\text { Net Fixed Assets } & \underline{1,450} & \text { Common Stock } &400 \\ {\text { Total Assets }} &{3,925} & \text { Retained Earnings } & \underline{700 }\\&&(\text { Total Liab \& Earnings }&3,925\\\end{array}$
-Refer to Exhibit 9-9. Calculate the sustainable growth rate for Rollerball Corporation.

• A) 19.1%
• B) 22.7%
• C) 27.5%
• D) 52.5%
• E) 62.5%

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Definitions:

Sternocleidomastoid

A muscle in the neck that runs from the sternum and clavicle to the mastoid process of the temporal bone, involved in facilitating rotation and flexion of the neck.

Semispinalis Capitis

is a muscle of the back located beneath the trapezius, playing a key role in extending, rotating, and bending the head backwards.

Splenius Capitis

A muscle located in the back of the neck that functions in extending and rotating the head.

Mastication

The process of chewing food in preparation for swallowing and digestion.