Question 1

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement:  The company's average sale period (turnover in days) for Year 2 is closest to:

Accepted Answer

A)  91.9 days
B)  48.9 days
C)  90.1 days
D)  198.1 daysE) A) and C)
F) B) and D)

Question 2

The times interest earned ratio of Whitney Corporation is 3.0.The interest expense for the year is $21,000,and the corporation's tax rate is 40%.The corporation's after-tax net income must be:

Accepted Answer

A)  $63,000
B)  $25,200
C)  $30,000
D)  $42,000E) A) and B)
F) All of the above

Question 3

During the year just ended,the retailer James Corporation purchased $425,000 of inventory.The inventory balance at the beginning of the year was $175,000.If the cost of goods sold for the year was $450,000,then the inventory turnover for the year was:

Accepted Answer

A)  2.77
B)  2.57
C)  3.00
D)  2.62E) None of the above
F) A) and B)

Question 4

Guttery Corporation has provided the following financial data from its balance sheet:  Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's operating cycle for Year 2 is closest to:

Accepted Answer

A)  71.2 days
B)  93.5 days
C)  18.6 days
D)  41.0 daysE) B) and D)
F) B) and C)

Question 5

If current assets exceed current liabilities,prepaying an expense on the last day of the year will:

Accepted Answer

A)  decrease the current ratio.
B)  increase the acid-test ratio.
C)  decrease the acid-test ratio.
D)  increase the current ratio.E) C) and D)
F) A) and B)

Question 6

Freiman Corporation's most recent balance sheet and income statement appear below:   The accounts receivable turnover for Year 2 is closest to:

Accepted Answer

A)  5.95
B)  5.70
C)  1.09
D)  0.92E) B) and C)
F) A) and B)

Question 7

Mihok Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $5,000.The market price of common stock at the end of Year 2 was $0.97 per share.
Required:
a.What is the company's earnings per share for Year 2?
b.What is the company's price-earnings ratio for Year 2?
c.What is the company's dividend payout ratio for Year 2?
d.What is the company's dividend yield ratio for Year 2?
e.What is the company's book value per share at the end of Year 2?

Accepted Answer

a.Earnings per share = Net Income ÷ Aver...

Question 8

The ratio of total cash,marketable securities,accounts receivable,and short-term notes to current liabilities is:

Accepted Answer

A)  the debt-to-equity ratio.
B)  the current ratio.
C)  the acid-test ratio.
D)  working capital.E) A) and B)
F) C) and D)

Question 9

Marovich Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $6.41 per share.
Required:
a.What is the company's net profit margin percentage for Year 2?
b.What is the company's gross margin percentage for Year 2?
c.What is the company's return on total assets for Year 2?
d.What is the company's return on equity for Year 2?
e.What is the company's earnings per share for Year 2?
f.What is the company's price-earnings ratio for Year 2?
g.What is the company's dividend payout ratio for Year 2?
h.What is the company's dividend yield ratio for Year 2?
i.What is the company's book value per share at the end of Year 2?

Accepted Answer

a.Net profit margin percentage = Net inc...

Question 10

Data from Estrin Corporation's most recent balance sheet and income statement appear below:  The average sale period for this year is closest to:

Accepted Answer

A)  101 days
B)  50 days
C)  108 days
D)  45 daysE) All of the above
F) None of the above

Question 11

Burdick Corporation has provided the following financial data from its balance sheet:  Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. The company's total asset turnover for Year 2 is closest to:

Accepted Answer

A)  0.99
B)  0.19
C)  5.32
D)  1.01E) B) and D)
F) A) and C)

Question 12

Mondok Corporation has provided the following financial data:   Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's accounts receivable turnover for Year 2?
e.What is the company's average collection period (age of receivables)for Year 2?
f.What is the company's inventory turnover for Year 2?
g.What is the company's average sale period (turnover in days)for Year 2?
h.What is the company's operating cycle for Year 2?
i.What is the company's total asset turnover for Year 2?
j.What is the company's times interest earned for Year 2?
k.What is the company's debt-to-equity ratio at the end of Year 2?
l.What is the company's equity multiplier at the end of Year 2?

Accepted Answer

a.Working capital = Current assets - Cur...

Question 13

Excerpts from Sydner Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. The accounts receivable turnover for Year 2 is closest to:

Accepted Answer

A)  6.62
B)  1.10
C)  6.32
D)  0.91E) A) and C)
F) A) and D)

Question 14

Burdick Corporation has provided the following financial data from its balance sheet:  Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. The company's equity multiplier at the end of Year 2 is closest to:

Accepted Answer

A)  0.70
B)  1.43
C)  2.34
D)  0.43E) All of the above
F) A) and B)

Question 15

When a company sells used equipment for a loss,the net profit margin percentage is unaffected.

Accepted Answer

A) True 
 B)False

Question 16

Financial statements for Narstad Corporation appear below:   Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to:

Accepted Answer

A)  0.50
B)  0.36
C)  0.19
D)  0.17E) A) and D)
F) A) and B)

Question 17

The following information relates to Conejo Corporation for last year:  What is Conejo's price-earnings ratio for last year?

Accepted Answer

A)  1.6
B)  2.4
C)  8.0
D)  2.0E) All of the above
F) A) and B)

Question 18

Fayer Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $10.88 per share. The company's times interest earned for Year 2 is closest to:

Accepted Answer

A)  7.71
B)  2.61
C)  5.01
D)  4.01E) C) and D)
F) B) and C)

Question 19

All other things the same,purchasing merchandise inventory would have no effect on the accounts receivable turnover ratio at a retailer.

Accepted Answer

A) True 
 B)False

Question 20

Doonan Corporation has provided the following financial data from its balance sheet and income statement:  The market price of common stock at the end of Year 2 was $4.79 per share. The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A)  0.76
B)  10.64
C)  16.52
D)  7.73E) A) and B)
F) C) and D)

Exam 14: Capital Budgeting Decisions

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's average sale period (turnover in days) for Year 2 is closest to:

Correct Answer
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If current assets exceed current liabilities,prepaying an expense on the last day of the year will:

Correct Answer
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Burdick Corporation has provided the following financial data from its balance sheet: Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. The company's equity multiplier at the end of Year 2 is closest to:

Correct Answer
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Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. The company's price-earnings ratio for Year 2 is closest to:

Correct Answer
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Freiman Corporation's most recent balance sheet and income statement appear below: The accounts receivable turnover for Year 2 is closest to:

Correct Answer
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The times interest earned ratio of Whitney Corporation is 3.0.The interest expense for the year is $21,000,and the corporation's tax rate is 40%.The corporation's after-tax net income must be:

Correct Answer
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Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $10.88 per share. The company's times interest earned for Year 2 is closest to:

Correct Answer
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When a company sells used equipment for a loss,the net profit margin percentage is unaffected.

Correct Answer
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Burdick Corporation has provided the following financial data from its balance sheet: Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. The company's total asset turnover for Year 2 is closest to:

Correct Answer
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During the year just ended,the retailer James Corporation purchased $425,000 of inventory.The inventory balance at the beginning of the year was $175,000.If the cost of goods sold for the year was $450,000,then the inventory turnover for the year was:

Correct Answer
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Correct Answer
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a.Net profit margin percentage = Net inc...
View Answer

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's operating cycle for Year 2 is closest to:

Correct Answer
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Correct Answer
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a.Earnings per share = Net Income ÷ Aver...
View Answer

Data from Estrin Corporation's most recent balance sheet and income statement appear below: The average sale period for this year is closest to:

Correct Answer
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The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

Correct Answer
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Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. The accounts receivable turnover for Year 2 is closest to:

Correct Answer
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All other things the same,purchasing merchandise inventory would have no effect on the accounts receivable turnover ratio at a retailer.

Correct Answer
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Correct Answer
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a.Working capital = Current assets - Cur...
View Answer

The ratio of total cash,marketable securities,accounts receivable,and short-term notes to current liabilities is:

Correct Answer
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Financial statements for Narstad Corporation appear below: Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to:

Correct Answer
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Exam 14: Capital Budgeting Decisions

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's average sale period (turnover in days) for Year 2 is closest to:

Correct AnswerverifiedShow Answer

If current assets exceed current liabilities,prepaying an expense on the last day of the year will:

Correct AnswerverifiedShow Answer

Burdick Corporation has provided the following financial data from its balance sheet: Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. The company's equity multiplier at the end of Year 2 is closest to:

Correct AnswerverifiedShow Answer

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. The company's price-earnings ratio for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Freiman Corporation's most recent balance sheet and income statement appear below: The accounts receivable turnover for Year 2 is closest to:

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The times interest earned ratio of Whitney Corporation is 3.0.The interest expense for the year is $21,000,and the corporation's tax rate is 40%.The corporation's after-tax net income must be:

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Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $10.88 per share. The company's times interest earned for Year 2 is closest to:

Correct AnswerverifiedShow Answer

When a company sells used equipment for a loss,the net profit margin percentage is unaffected.

Correct AnswerverifiedShow Answer

Burdick Corporation has provided the following financial data from its balance sheet: Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. The company's total asset turnover for Year 2 is closest to:

Correct AnswerverifiedShow Answer

During the year just ended,the retailer James Corporation purchased $425,000 of inventory.The inventory balance at the beginning of the year was $175,000.If the cost of goods sold for the year was $450,000,then the inventory turnover for the year was:

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Net profit margin percentage = Net inc...View AnswerShow Answer

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's operating cycle for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Earnings per share = Net Income ÷ Aver...View AnswerShow Answer

Data from Estrin Corporation's most recent balance sheet and income statement appear below: The average sale period for this year is closest to:

Correct AnswerverifiedShow Answer

The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

Correct AnswerverifiedShow Answer

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. The accounts receivable turnover for Year 2 is closest to:

Correct AnswerverifiedShow Answer

All other things the same,purchasing merchandise inventory would have no effect on the accounts receivable turnover ratio at a retailer.

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Working capital = Current assets - Cur...View AnswerShow Answer

The ratio of total cash,marketable securities,accounts receivable,and short-term notes to current liabilities is:

Correct AnswerverifiedShow Answer

Financial statements for Narstad Corporation appear below: Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to:

Correct AnswerverifiedShow Answer

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a.Net profit margin percentage = Net inc...
View Answer

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a.Earnings per share = Net Income ÷ Aver...
View Answer

Correct Answer
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a.Working capital = Current assets - Cur...
View Answer

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