SFU Beedie courses only. See the course list →
Business TutorBusiness Tutor
← Finance tools
BUS 312Unit 3Problem solver

Unit 3 questions, solved step by step.

Ratios and DuPont worked the way an exam wants them. The figures each step uses light up and the picture builds as you go. Type your own numbers to solve a homework question with the same shape.

Question 1 of 6ExamTutorial question from the slides

Skeena Valley Growers: read the statements, compute the ratios

Skeena Valley Growers Ltd. has closed its books for 2026. Its year-end balance sheet and its income statement are in the Given panel, in $ thousands. Tax is 25% of taxable income. Use year-end figures and a 365-day year.
  1. Find the current ratio and the quick ratio.
  2. Find the total debt ratio and the equity multiplier.
  3. Find inventory turnover and days' sales in inventory.
  4. Find the profit margin, return on assets and return on equity.
  5. Confirm your return on equity with the DuPont identity.
Given
Balance sheet, end of 2026 ($ thousands)
Cash$60k
Accounts receivable$240k
Inventory$300k
Net fixed assets$1,400k
Current liabilities$300k
Long-term debt$500k
Total equity$1,200k
Income statement, 2026 ($ thousands)
Sales$3,000k
Cost of goods sold$2,250k
Depreciation$250k
Interest paid$100k
Tax rate25%
Solution
Balance sheet, 2026 ($k)
Cash$60
Accounts receivable$240
Inventory$300
Total current assets$600
Net fixed assets$1,400
Total assets$2,000
Current liabilities$300
Long-term debt$500
Total liabilities$800
Total equity$1,200
Income statement, 2026 ($k)
Sales$3,000
Cost of goods sold$2,250
Depreciation$250
EBIT$500
Interest paid$100
Taxable income$400
Taxes at 25%$100
Net income$300
Current ?Quick ?Debt ratio ?Equity multiplier ?Inventory turnover ?Days in inventory ?Profit margin ?ROA ?ROE ?DuPont ROE ?
Read the question and the givens first. Try the first part yourself, then press Start solving.
a. Current ratio
?
a. Quick ratio
?
b. Total debt ratio
?
b. Equity multiplier
?
c. Inventory turnover
?
c. Days in inventory
?
d. Profit margin
?
d. Return on assets
?
d. Return on equity
?
e. DuPont ROE
?

Midterm coming up and cash flow still feels slippery?

Bring your problem sets. We work through them together until every type feels routine.

FAQ

Questions, answered.

Still unsure about something? Message us and you will hear back within a day.

See all questions
  • In person, we meet at the SFU Burnaby campus or in a private meeting room near Brentwood in Burnaby. Online sessions run on Zoom. You choose when you book.