Question 1

Use the table for the question(s)below.
Consider the following balance sheet:
    
-What is Luther's net working capital in 2008?

Accepted Answer

A) $12 million 
B) $27 million 
C) $39 million 
D) $63.6 million 
A) $12 million 
B) $27 million 
C) $39 million 
D) $63.6 million A

Question 2

On the balance sheet,short-term debt appears:

Accepted Answer

A) in the Stockholders' Equity section. 
B) in the Operating Expenses section. 
C) in the Current Assets section. 
D) in the Current Liabilities section. 
A) in the Stockholders' Equity section. 
B) in the Operating Expenses section. 
C) in the Current Assets section. 
D) in the Current Liabilities section. D

Question 3

Use the table for the question(s)below.
Consider the following balance sheet:
    
-Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Accounts payable days for 2009 is closest to:

Accepted Answer

A) 27.5 
B) 5.71 
C) 52.4 
D) 63.8 
A) 27.5 
B) 5.71 
C) 52.4 
D) 63.8 D

Question 4

Use the table for the question(s)below.
Consider the following balance sheet:
    
-Luther's quick ratio for 2008 is closest to:

Accepted Answer

A) 0.77 
B) 0.87 
C) 1.15 
D) 1.30 
A) 0.77 
B) 0.87 
C) 1.15 
D) 1.30

Question 5

The Sarbanes-Oxley Act (SOX)stiffened penalties for providing false information by:

Accepted Answer

A) requiring the CEO and CFO to return bonuses or profits from the sale of stock that are later shown to be due to misstated financial reports. 
B) imposing large compliance costs on small companies. 
C) requiring auditing firms to have long-standing relationships with their clients and receive lucrative auditing and consulting fees from them. 
D) putting strict limits on the amount of non-audit fees (consulting or otherwise)that an accounting firm can earn from a firm that it audits. 
A) requiring the CEO and CFO to return bonuses or profits from the sale of stock that are later shown to be due to misstated financial reports. 
B) imposing large compliance costs on small companies. 
C) requiring auditing firms to have long-standing relationships with their clients and receive lucrative auditing and consulting fees from them. 
D) putting strict limits on the amount of non-audit fees (consulting or otherwise)that an accounting firm can earn from a firm that it audits.

Question 6

The inventory days ratio measures:

Accepted Answer

A) the average length of time it takes a company to sell its inventory. 
B) the average length of time it takes the company's suppliers to deliver its inventory. 
C) the level of sales required to keep a company's average inventory on the books. 
D) the percentage change in inventory over the past year. 
A) the average length of time it takes a company to sell its inventory. 
B) the average length of time it takes the company's suppliers to deliver its inventory. 
C) the level of sales required to keep a company's average inventory on the books. 
D) the percentage change in inventory over the past year.

Question 7

Use the table for the question(s)below.
Consider the following balance sheet:
    
-When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:

Accepted Answer

A) 0.43 
B) 2.29 
C) 2.98 
D) 3.57 
A) 0.43 
B) 2.29 
C) 2.98 
D) 3.57

Question 8

Perrigo's book value of equity is closest to:

Accepted Answer

A) $952.16 million 
B) $3580.14 million 
C) $4168.06 million 
D) $4425.15 million 
A) $952.16 million 
B) $3580.14 million 
C) $4168.06 million 
D) $4425.15 million

Question 9

Zoe Dental Implements has gross property,plant and equipment totaling $1.4 million,depreciation expense this year of $200,000,and accumulated depreciation of $750,000.What is the book value of Zoe's property,plant and equipment?

Accepted Answer

A) $1.4 million 
B) $1.2 million 
C) $550,000 
D) $650,000 
A) $1.4 million 
B) $1.2 million 
C) $550,000 
D) $650,000

Question 10

Use the table for the question(s)below.
Consider the following income statement and other information:
  
-If Luther's accounts receivable were $55.5 million in 2009,then calculate Luther's accounts receivable days for 2009.

Accepted Answer

Accounts r

Question 11

On the balance sheet,current maturities of long-term debt appears:

Accepted Answer

A) in the Stockholders' Equity section. 
B) in the Operating Expenses section. 
C) in the Current Assets section. 
D) in the Current Liabilities section. 
A) in the Stockholders' Equity section. 
B) in the Operating Expenses section. 
C) in the Current Assets section. 
D) in the Current Liabilities section.

Question 12

Which of the following is (are)deducted from EBIT to determine pretax income?

Accepted Answer

A) Earnings per share 
B) Interest expense 
C) Corporate taxes 
D) Both B and C 
A) Earnings per share 
B) Interest expense 
C) Corporate taxes 
D) Both B and C

Question 13

Gross profit is calculated as:

Accepted Answer

A) Total sales - cost of sales - selling,general and administrative expenses - depreciation and amortization. 
B) Total sales - cost of sales - selling,general and administrative expenses. 
C) Total sales - cost of sales. 
D) None of the above 
A) Total sales - cost of sales - selling,general and administrative expenses - depreciation and amortization. 
B) Total sales - cost of sales - selling,general and administrative expenses. 
C) Total sales - cost of sales. 
D) None of the above

Question 14

Which of the following is NOT an operating expense?

Accepted Answer

A) Interest expense 
B) Depreciation and amortization 
C) Selling,general and administrative expenses 
D) Research and development 
A) Interest expense 
B) Depreciation and amortization 
C) Selling,general and administrative expenses 
D) Research and development

Question 15

Chloe Floral Company had segment earnings as follows (in thousands):
2016 2015
Greenery $140 $125
Blooms $240 $215
Pottery and Vases $180 $155
Which segment had the highest percentage growth?

Accepted Answer

A) Greenery 
B) Blooms 
C) Pottery and Vases 
D) Answer cannot be determined from information given. 
A) Greenery 
B) Blooms 
C) Pottery and Vases 
D) Answer cannot be determined from information given.

Question 16

Off-balance sheet transactions are required to be disclosed:

Accepted Answer

A) in the management discussion and analysis. 
B) in the auditor's report. 
C) in the Securities and Exchange Commission's commentary. 
D) in the statement of stockholders' equity. 
A) in the management discussion and analysis. 
B) in the auditor's report. 
C) in the Securities and Exchange Commission's commentary. 
D) in the statement of stockholders' equity.

Question 17

U.S.public companies are required to file their annual financial statements with the U.S.Securities and Exchange Commission on which form?

Accepted Answer

A) 10-A 
B) 10-K 
C) 10-Q 
D) 10-SEC 
A) 10-A 
B) 10-K 
C) 10-Q 
D) 10-SEC

Question 18

The Sarbanes-Oxley Act (SOX)forced companies to validate their internal financial control processes by:

Accepted Answer

A) putting strict limits on the amount of non-audit fees (consulting or otherwise)that an accounting firm can earn from a firm that it audits. 
B) requiring the CEO and CFO to return bonuses or profits from the sale of stock that are later shown to be due to misstated financial reports. 
C) requiring auditing firms to have long-standing relationships with their clients and receive lucrative auditing and consulting fees from them. 
D) requiring senior management and the boards of public companies to validate and certify the process through which funds are allocated and controlled. 
A) putting strict limits on the amount of non-audit fees (consulting or otherwise)that an accounting firm can earn from a firm that it audits. 
B) requiring the CEO and CFO to return bonuses or profits from the sale of stock that are later shown to be due to misstated financial reports. 
C) requiring auditing firms to have long-standing relationships with their clients and receive lucrative auditing and consulting fees from them. 
D) requiring senior management and the boards of public companies to validate and certify the process through which funds are allocated and controlled.

Question 19

Use the following information for ECE incorporated:
Assets $200 million
Shareholder Equity $100 million
Sales $300 million
Net Income $15 million
Interest Expense $2 million
-If ECE reported $15 million in net income,then ECE's Return on Equity (ROE)is:

Accepted Answer

A) 5.0% 
B) 7.5% 
C) 10.0% 
D) 15.0% 
A) 5.0% 
B) 7.5% 
C) 10.0% 
D) 15.0%

Question 20

If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding,then ECE's market-to-book ratio is closest to:

Accepted Answer

A) 0.24 
B) 4 
C) 6 
D) 30 
A) 0.24 
B) 4 
C) 6 
D) 30

Use the table for the question(s)below. Consider the following balance sheet: -What is Luther's net working capital in 2008?

On the balance sheet,short-term debt appears:

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Accounts payable days for 2009 is closest to:

Use the table for the question(s)below. Consider the following balance sheet: -Luther's quick ratio for 2008 is closest to:

The Sarbanes-Oxley Act (SOX)stiffened penalties for providing false information by:

The inventory days ratio measures:

Use the table for the question(s)below. Consider the following balance sheet: -When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:

Perrigo's book value of equity is closest to:

Zoe Dental Implements has gross property,plant and equipment totaling $1.4 million,depreciation expense this year of $200,000,and accumulated depreciation of $750,000.What is the book value of Zoe's property,plant and equipment?

Use the table for the question(s)below. Consider the following income statement and other information: -If Luther's accounts receivable were $55.5 million in 2009,then calculate Luther's accounts receivable days for 2009.

On the balance sheet,current maturities of long-term debt appears:

Which of the following is (are)deducted from EBIT to determine pretax income?

Gross profit is calculated as:

Which of the following is NOT an operating expense?

Chloe Floral Company had segment earnings as follows (in thousands): 2016 2015 Greenery $140 $125 Blooms $240 $215 Pottery and Vases $180 $155 Which segment had the highest percentage growth?

Off-balance sheet transactions are required to be disclosed:

U.S.public companies are required to file their annual financial statements with the U.S.Securities and Exchange Commission on which form?

The Sarbanes-Oxley Act (SOX)forced companies to validate their internal financial control processes by:

Use the following information for ECE incorporated: Assets $200 million Shareholder Equity $100 million Sales $300 million Net Income $15 million Interest Expense $2 million -If ECE reported $15 million in net income,then ECE's Return on Equity (ROE)is:

If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding,then ECE's market-to-book ratio is closest to:

The Corporation

Financial Decision Making and the Law of One Price

The Time Value of Money

Interest Rates

Valuing Bonds

Investment Decision Rules

Fundamentals of Capital Budgeting

Valuing Stocks

Capital Markets and the Pricing of Risk

Optimal Portfolio Choice and the Capital Asset Pricing Model

Estimating the Cost of Capital

Investor Behavior and Capital Market Efficiency

Capital Structure in a Perfect Market

Debt and Taxes

Financial Distress,managerial Incentives,and Information

Payout Policy

Capital Budgeting and Valuation With Leverage

Valuation and Financial Modeling: a Case Study

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Exam 2: Introduction to Financial Statement Analysis

Use the table for the question(s)below. Consider the following balance sheet: -What is Luther's net working capital in 2008?

On the balance sheet,short-term debt appears:

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Accounts payable days for 2009 is closest to:

Use the table for the question(s)below. Consider the following balance sheet: -Luther's quick ratio for 2008 is closest to:

The Sarbanes-Oxley Act (SOX)stiffened penalties for providing false information by:

The inventory days ratio measures:

Use the table for the question(s)below. Consider the following balance sheet: -When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:

Perrigo's book value of equity is closest to:

Zoe Dental Implements has gross property,plant and equipment totaling $1.4 million,depreciation expense this year of $200,000,and accumulated depreciation of $750,000.What is the book value of Zoe's property,plant and equipment?

Use the table for the question(s)below. Consider the following income statement and other information: -If Luther's accounts receivable were $55.5 million in 2009,then calculate Luther's accounts receivable days for 2009.

On the balance sheet,current maturities of long-term debt appears:

Which of the following is (are)deducted from EBIT to determine pretax income?

Gross profit is calculated as:

Which of the following is NOT an operating expense?

Chloe Floral Company had segment earnings as follows (in thousands): 2016 2015 Greenery $140 $125 Blooms $240 $215 Pottery and Vases $180 $155 Which segment had the highest percentage growth?

Off-balance sheet transactions are required to be disclosed:

U.S.public companies are required to file their annual financial statements with the U.S.Securities and Exchange Commission on which form?

The Sarbanes-Oxley Act (SOX)forced companies to validate their internal financial control processes by:

Use the following information for ECE incorporated: Assets $200 million Shareholder Equity $100 million Sales $300 million Net Income $15 million Interest Expense $2 million -If ECE reported $15 million in net income,then ECE's Return on Equity (ROE)is:

If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding,then ECE's market-to-book ratio is closest to:

The Corporation

Financial Decision Making and the Law of One Price

The Time Value of Money

Interest Rates

Valuing Bonds

Investment Decision Rules

Fundamentals of Capital Budgeting

Valuing Stocks

Capital Markets and the Pricing of Risk

Optimal Portfolio Choice and the Capital Asset Pricing Model

Estimating the Cost of Capital

Investor Behavior and Capital Market Efficiency

Capital Structure in a Perfect Market

Debt and Taxes

Financial Distress,managerial Incentives,and Information

Payout Policy

Capital Budgeting and Valuation With Leverage

Valuation and Financial Modeling: a Case Study

Filters