Exam 3: Working With Financial Statements

The Frasier Company has a long-term debt ratio of 0.5 and a current ratio of 1.3. Current liabilities are $900, sales are $6,000, profit margin is 10%, and ROE is 19&. What is the amount of the firm's net fixed assets?

If a firm has a total debt ratio of 0.5, what is its equity multiplier?

Calculate the current ratio given the following information: current liabilities = $55,000; sales = $250,000; cost of goods sold = $120,000; cash ratio = 0.91; accounts receivable turnover = 6.25; inventory turnover = 2.

When comparing the financial statements of one firm with those of another firm, a problem that may be encountered is that either one, or both, of the firms may be conglomerates and thus have unrelated lines of business.

Atlasta Limo Corp. has an average collection period of 36.5 days. Sales are $300,001. What is the average investment in receivables?

If a firm uses part of the cash it received from payment of an account receivable to buy inventory and leaves the rest in its bank account, its current ratio will remain unchanged.

Sales divided by the value computed as current assets minus current liabilities is referred to as the:

Sing Lee's has accounts payable of $300, inventory of $250, cash of $50, fixed assets of $500, accounts receivable of $200, and long-term debt of $400. What is the value of the net working capital to total assets ratio?

Problems with financial statement analysis include all of the following EXCEPT:

Current assets are $94,700. Accounts payable is $36,200, net income is $12,400 and sales are $110,800. What is the net working capital turnover rate?

Use the following statement of financial position and statement of comprehensive income Accounts payable for 2018 will have a value of _____ % on the firm's common-size financial statement.

The financial manager of Mystery, Inc. tells her banker that Mystery's accounts receivable declined by $275,000 that day. Based on this, the bank knows that Mystery's current ratio:

Ratios that measure the firm's financial leverage are known as:

Herman's Bar and Grill paid $1,618 in interest and $265 in dividends last year. The times interest earned ratio is 1.9 and the depreciation expense is $50. What is the value of the cash coverage ratio?

Which of the following contains the components of the Du Pont identity for the company? Use year-end 2018 values where appropriate.

Given the following information, calculate sales value. Total asset turnover 0.80; total liabilities $5,000; total equity $5,000.

If cash inflows for the company cease, the firm will be able to stay in business for about:

The current ratio is measured as:

Calculate depreciation expense given the following information. Interest expense $2,000; times interest earned 5; cash coverage ratio 5.5.

Assume a firm's current ratio equals 3.1. Which of the following actions would increase it?