Exam 5: Evaluating Operating and Financial Performance

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of$3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of$1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218. -What is the current ratio for Runs and Goses?

(Multiple Choice)
4.9/5
(32)

A venture's cash,marketable securities,and receivables comprise the venture's "liquid assets".

(True/False)
4.9/5
(40)

Leverage ratios indicate the extent to which the venture has used debt and its ability to meet debt obligations.

(True/False)
4.7/5
(37)

The term "cash build" is measured as:

(Multiple Choice)
4.9/5
(45)

During the development and startup stages of a venture's life cycle,important users of financial ratios and measures include the entrepreneur,business angels,and venture capitalists (VCs).

(True/False)
4.8/5
(37)

"Net working capital" is calculated as fixed assets minus current liabilities.

(True/False)
4.8/5
(42)

The equity multiplier is considered an efficiency ratio.

(True/False)
4.7/5
(30)

Accounting rules require that the current maturities of long-term debt obligations be classified as short-term liabilities.

(True/False)
4.9/5
(37)

The part of a venture's interest payment that is subsidized by the government because of the deductibility of interest is called the interest tax shield.

(True/False)
4.8/5
(33)

The difference between a venture's ability to generate cash to pay interest and the amount of interest it has to pay is determined by which of the following ratios?

(Multiple Choice)
4.8/5
(36)

Which of the following is true?

(Multiple Choice)
5.0/5
(39)

Net working capital is a dollar amount measure of the cushion between current assets and current liabilities.

(True/False)
4.8/5
(40)

In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of$3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of$1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218. -The interest coverage ratio for Runs and Goses is:

(Multiple Choice)
4.7/5
(38)

A venture has net sales of $400,000,cost of goods sold of $200,000,operating expenses (selling,general,and administrative)of $100,000,and interest expenses of $50,000.What is the operating profit margin?

(Multiple Choice)
4.9/5
(38)

Showing the relationships between two or more financial variable and/or time,financial ratios are useful means of summarizing large amounts of financial data for comparative purposes.

(True/False)
4.8/5
(36)

Commercial banks are important users of financial ratios and measures during the development and startup stages of ventures.

(True/False)
4.7/5
(33)

Which of the following is not a profitability and efficiency ratio?

(Multiple Choice)
4.7/5
(33)

Dividing the average total assets by the average owners' equity is called which of the following ratios?

(Multiple Choice)
4.8/5
(34)

In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of$3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of$1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218. -The gross profit margin for Runs and Goses is?

(Multiple Choice)
4.7/5
(38)

Liquidity ratios indicate the venture's ability to pay short term assets from short-term liabilities.

(True/False)
4.8/5
(38)
Showing 41 - 60 of 64
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)