Exam 3: Working With Financial Statements

Calculate the return on assets given the following information: common shares outstanding = 300,000; earning per share = $4.00; total assets = $5,000,000; total equity = $3,000,000.

(Multiple Choice)

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Question 281

Calculate the return on equity given the following information: common shares outstanding = 250,000; earning per share = $2.00; total assets = $2,000,000; total equity = $800,000.

(Multiple Choice)

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Question 282

On a common-size statement of ﬁnancial position, all _ accounts are shown as a percentage of _.

(Multiple Choice)

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Question 283

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

(Multiple Choice)

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Question 284

A Toronto banker considering loaning money to a ﬁrm for ten years would most likely prefer the ﬁrm have a debt ratio of _ and a times interest earned ratio of _.

(Multiple Choice)

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Question 285

Calculate sales given the following data. Total ﬁxed assets $400,000; long-term liabilities $155,000; total liabilities $280,000; total shareholders' equity $320,000; net working capital turnover 20.

(Multiple Choice)

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Question 286

The Vice President of Finance of Alpha, Inc. wants to improve the current ratio on the company's next ﬁnancial statement. Explain what he/she can legitimately do now to help accomplish this goal. Provide speciﬁc examples in your answer.

(Essay)

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Question 287

Water Forms, Inc. has sales of $268,900, net income of $34,800, net ﬁxed assets of $146,700, and current assets of $98,200. The ﬁrm has $46,900 in inventory. What is the common-size statement Value of inventory?

(Multiple Choice)

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Question 288

In words, what does a total asset turnover of 1.5 times mean?

(Multiple Choice)

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Question 289

Which of the following does NOT correctly complete this sentence: The ﬁnancial statements of a company ….

(Multiple Choice)

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Question 290

A poor industry outlook along with low investor opinion of the ﬁrm are most apt to cause a ﬁrm to have a higher price-earnings ratio?

(True/False)

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Question 291

Which of the following are considered a use of cash?

(Multiple Choice)

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Question 292

Big Foot Wholesalers has sales of $1,387,400, costs of goods sold of $891,400, inventory of $188,936, and accounts receivable of $94,800. How many days, on average, does it take the ﬁrm to Sell its inventory assuming that all sales are on credit?

(Multiple Choice)

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Question 293

Calculate the value of long-term debt given the following information: total debt = $100,000; debt/equity ratio = 0.40; long-term debt ratio = 0.2308.

(Multiple Choice)

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Question 294

Ratios that measure a ﬁrm's ﬁnancial leverage are known as _____ ratios.

(Multiple Choice)

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Question 295

The ﬁnancial ratio measured as the price per share of stock divided by earnings per share is known as the:

(Multiple Choice)

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Question 296

Ajax Company has a debt-equity ratio of 0.75. Return on assets is 9.5 %. What is the return on equity?

(Multiple Choice)

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Question 297

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.

(Multiple Choice)

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Question 298

Net income divided by total revenue is referred to as:

(Multiple Choice)

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Question 299

Days' sales in inventory of grocery stores are generally higher when compared to car dealerships.

(True/False)

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Question 300

Showing 281 - 300 of 414

Exam 3: Working With Financial Statements

Calculate the return on assets given the following information: common shares outstanding = 300,000; earning per share = $4.00; total assets = $5,000,000; total equity = $3,000,000.

Calculate the return on equity given the following information: common shares outstanding = 250,000; earning per share = $2.00; total assets = $2,000,000; total equity = $800,000.

On a common-size statement of ﬁnancial position, all _____ accounts are shown as a percentage of _____.

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

A Toronto banker considering loaning money to a ﬁrm for ten years would most likely prefer the ﬁrm have a debt ratio of _____ and a times interest earned ratio of _____.

Calculate sales given the following data. Total ﬁxed assets $400,000; long-term liabilities $155,000; total liabilities $280,000; total shareholders' equity $320,000; net working capital turnover 20.

The Vice President of Finance of Alpha, Inc. wants to improve the current ratio on the company's next ﬁnancial statement. Explain what he/she can legitimately do now to help accomplish this goal. Provide speciﬁc examples in your answer.

Water Forms, Inc. has sales of $268,900, net income of $34,800, net ﬁxed assets of $146,700, and current assets of $98,200. The ﬁrm has $46,900 in inventory. What is the common-size statement Value of inventory?

In words, what does a total asset turnover of 1.5 times mean?

Which of the following does NOT correctly complete this sentence: The ﬁnancial statements of a company ….

A poor industry outlook along with low investor opinion of the ﬁrm are most apt to cause a ﬁrm to have a higher price-earnings ratio?

Which of the following are considered a use of cash?

Big Foot Wholesalers has sales of $1,387,400, costs of goods sold of $891,400, inventory of $188,936, and accounts receivable of $94,800. How many days, on average, does it take the ﬁrm to Sell its inventory assuming that all sales are on credit?

Calculate the value of long-term debt given the following information: total debt = $100,000; debt/equity ratio = 0.40; long-term debt ratio = 0.2308.

Ratios that measure a ﬁrm's ﬁnancial leverage are known as _____ ratios.

The ﬁnancial ratio measured as the price per share of stock divided by earnings per share is known as the:

Ajax Company has a debt-equity ratio of 0.75. Return on assets is 9.5 %. What is the return on equity?

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.

Net income divided by total revenue is referred to as:

Days' sales in inventory of grocery stores are generally higher when compared to car dealerships.

Introduction to Corporate Finance

Financial Statements, Taxes, and Cash Flow

Long-Term Financial Planning and Growth

Introduction to Valuation: the Time Value of Money

Discounted Cash Flow Valuation

Interest Rates and Bond Valuation

Stock Valuation

Net Present Value and Other Investment Criteria

Making Capital Investment Decisions

Project Analysis and Evaluation

Some Lessons From Capital Market History

Return, Risk, and the Security Market Line

Cost of Capital

Raising Capital

Financial Leverage and Capital Structure Policy

Dividends and Payout Policy

Short-Term Finance and Planning

Cash and Liquidity Management

Credit and Inventory Management

International Corporate Finance

Behavioral Finance: Implications for Financial Management

Enterprise Risk Management

Options and Corporate Finance

Option Valuation

Mergers and Acquisitions

Filters

On a common-size statement of ﬁnancial position, all _ accounts are shown as a percentage of _.

A Toronto banker considering loaning money to a ﬁrm for ten years would most likely prefer the ﬁrm have a debt ratio of _ and a times interest earned ratio of _.