ECON MOD 12

SDJ, Inc., has net working capital of $2,360, current liabilities of $5,430, and inventory of $1,220. What is the quick ratio? _______ times (enter your response rounded to two decimal places)

1.21

SDJ, Inc., has net working capital of $2,360, current liabilities of $5,430, and inventory of $1,220. What is the current ratio? _______ times (enter your response rounded to two decimal places)

1.43

Wims, Inc., has sales of $19.5 million, total assets of $14.5 million and total debt of $5.3 million. The profit margin is 8 percent. What is the company's net income? $_____ million (enter your response rounded to two decimal places)

1.56

Wims, Inc., has sales of $19.5 million, total assets of $14.5 million and total debt of $5.3 million. The profit margin is 8 percent. What is the company's ROA? ____ % (enter your response rounded to two decimal places)

10.76

Wims, Inc., has sales of $19.5 million, total assets of $14.5 million and total debt of $5.3 million. The profit margin is 8 percent. What is the company's ROE? ____ % (enter your response rounded to two decimal places)

16.96

Given the following information, Income Statement Accounts for the Year Ending 2017 Cost of Goods Sold $1,419,000 Interest Expense. $288,000 Taxes $318,000 Revenue $2,984,000 Administrative Expenses $454,000 Depreciation $258,000 Calculate Net Income (= profit). Net Income = $______ (enter your response as a whole number)

247,000

Given the following information, Income Statement Accounts for the Year Ending 2017 Cost of Goods Sold. $1,419,000 Interest Expense. $288,000 Taxes $318,000 Revenue $2,984,000 Administrative Expenses $454,000 Depreciation. $258,000 Calculate Taxable Income. Taxable Income = $______ (enter your response as a whole number)

565,000

Given the following information, Income Statement Accounts for the Year Ending 2017 Cost of Goods Sold $1,419,000 Interest Expense $288,000 Taxes $318,000 Revenue $2,984,000 Administrative Expenses $454,000 Depreciation $258,000 Calculate EBIT. EBIT = $______ (enter your response as a whole number)

853,000

Highly liquid assets: A. can be sold quickly at close to full value B. increase the probability a firm will face financial distress C. generally produce a high rate of return D. include all intangible assets E. appear on the right side of a balance she

A

Leon is the owner of a corner store. Which ratio should he compute if he wants to know how long the store can pay its bills given its current level of cash and accounts receivable? Assume all receivables are collectible when due. A. Quick ratio B. Cash ratio C. Current ratio D. Debt ratio E. Cash coverage ratio

A

Which of the statements below is TRUE? Accounting Identity is: A. Assets ≡ Owners' Equity - Liabilities B. Assets ≡ Liabilities + Owners' Equity C. Liabilities ≡ Assets + Owners' Equity D. Assets ≡ Liabilities - Owners' Equity

B

Which one of the following is an intangible fixed asset? A. Machinery B. Copyright C. Account receivable D. Building E. Inventory

B

Production equipment is classified as: A. an intangible fixed asset B. a current liability C. a tangible fixed asset D. a current asset

C

Taylor Industries has current liabilities of $54,900 and accounts receivable of $88,700. The firm has total assets of $395,000 and net fixed assets of $265,100. The owners' equity has a book value of $147,500. What is the amount of the net working capital? A. $77,400 B. $33,800 C. $75,000 D. −$2,400 E. −$8,500

C

Which of the statements below is TRUE? A. The ownership accounts or owners' equity section of the balance sheet is made up of common stock but not retained earnings. B. The Statement of Retained Earnings is used to show the distribution of the interest paid for the past period. C. The ownership accounts or owners' equity section of the balance sheet reflects the owners' stake in the firm. D. The retained earnings amount on the balance sheet really reflect retained earnings and other stockholder equity, but not treasury stock.

C

Which one of the following will increase the profit margin of a firm, all else held constant? A. Decrease in sales B. Increase in fixed costs C. Decrease in the tax rate D. Increase in depreciation expense E. Increase in interest paid

C

Net working capital is defined as: A. available cash minus current liabilities B. total assets minus total liabilities C. the depreciated book value of a firm's fixed assets D. current assets minus current liabilities E. the value of a firm's current assets

D

The Pretzel Factory has net sales of $821,300 and costs of $698,500. The depreciation expense is $28,400 and the interest paid is $8,400. What is the amount of the firm's operating cash flow if the tax rate is 34 percent? A. $87,620 B. $89,540 C. $91,220 D. $93,560 E. $95,240

D

The financial statement that summarizes a firm's accounting value as of a particular date is called the: A. liquidity position B. income statement C. periodic operating statement D. balance sheet E. cash flow statement

D

The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes. Next, interest expense is subtracted to find the ________ for the period. A. net income B. EBIT C. after-tax income D. taxable income

D

The purpose of studying financial statements is A. to mechanically learn how to read and understand footnotes B. to mechanically build portfolio analysis C. to primarily investigate all portions of the statements that have D. relevance for dividend policy E. to understand those portions of the statements that have relevance for financial decision making

E