Exam 3: Working With Financial Statements

Al's has a price-earnings ratio of 18.5.Ben's also has a price-earnings ratio of 18.5.Which one of the following statements must be true if Al's has a higher PEG ratio than Ben's?

Which one of the following is a source of cash?

Which one of the following will decrease if a firm can decrease its operating costs,all else constant?

Which one of the following is a source of cash?

According to the Statement of Cash Flows,a decrease in accounts receivable will _____ the cash flow from _____ activities.

Taylor's Men's Wear has a debt-equity ratio of 42 percent,sales of $749,000,net income of $41,300,and total debt of $206,300.What is the return on equity?

The formula which breaks down the return on equity into three component parts is referred to as which one of the following?

On the Statement of Cash Flows,which of the following are considered operating activities? I.costs of goods sold II.decrease in accounts payable III.interest paid IV.dividends paid

During the year,Kitchen Supply increased its accounts receivable by $130,decreased its inventory by $75,and decreased its accounts payable by $40.How did these three accounts affect the firm's cash flows for the year?

A firm has an interval measure of 48.This means that the firm has sufficient liquid assets to do which one of the following?

Which one of the following statements is correct?

A firm has 160,000 shares of stock outstanding,sales of $1.94 million,net income of $126,400,a price-earnings ratio of 18.7,and a book value per share of $7.92.What is the market-to-book ratio?

If a firm produces a twelve percent return on assets and also a twelve percent return on equity,then the firm:

Last year,which is used as the base year,a firm had cash of $52,accounts receivable of $218,inventory of $509,and net fixed assets of $1,107.This year,the firm has cash of $61,accounts receivable of $198,inventory of $527,and net fixed assets of $1,216.What is the common-base year value of accounts receivable?

On a common-size balance sheet all accounts are expressed as a percentage of:

Lancaster Toys has a profit margin of 7.5 percent,a total asset turnover of 1.71,and a return on equity of 21.01 percent.What is the debt-equity ratio?

On a common-base year financial statement,accounts receivables will be expressed relative to which one of the following?

The Du Pont identity can be used to help managers answer which of the following questions related to a firm's operations? I.How many sales dollars has the firm generated per each dollar of assets? II.How many dollars of assets has a firm acquired per each dollar in shareholders' equity? III.How much net profit is a firm generating per dollar of sales? IV.Does the firm have the ability to meet its debt obligations in a timely manner?

The sources and uses of cash over a stated period of time are reflected on the:

Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.6.Current liabilities are $700,sales are $4,440,the profit margin is 9.5 percent,and the return on equity is 19.5 percent.How much does the firm have in net fixed assets?