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42.
A firm currently has $600 in debt for every $1,000 in equity. Assume the firm
uses some of its cash to decrease its debt while maintaining its current
equity and net income. Which one of the following will decrease as a result
of this action?
43.
Which one of the following statements is correct?
44.
It is easier to evaluate a firm using financial statements when the firm:
45.
The most acceptable method of evaluating the financial statements of a
firm is to compare the firm's current:
46.
Which of the following represent problems encountered when comparing
the financial statements of two separate entities?
I. Either one, or both, of the firms may be conglomerates and thus have
unrelated lines of business.
II. The operations of the two firms may vary geographically.
III. The firms may use differing accounting methods.
IV. The two firms may be seasonal in nature and have different fiscal year
ends.
47.
Wise's Corner Grocer had the following current account values. What effect
did the change in net working capital have on the firm's cash flows for
2012?
48.
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?
49.
A firm generated net income of $862. The depreciation expense was $47
and dividends were paid in the amount of $25. Accounts payables
decreased by $13, accounts receivables increased by $28, inventory
decreased by $14, and net fixed assets decreased by $8. There was no
interest expense. What was the net cash flow from operating activity?
50.
A firm has sales of $2,190, net income of $174, net fixed assets of $1,600,
and current assets of $720. The firm has $310 in inventory. What is the
common-size statement value of inventory?
51.
A firm has sales of $3,200, net income of $390, total assets of $4,500, and
total equity of $2,750. Interest expense is $50. What is the common-size
statement value of the interest expense?
52.
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?
53.
Russell's Deli has cash of $136, accounts receivable of $95, accounts
payable of $210, and inventory of $409. What is the value of the quick
ratio?
54.
Uptown Men's Wear has accounts payable of $2,214, inventory of $7,950,
cash of $1,263, fixed assets of $8,400, accounts receivable of $3,907, and
long-term debt of $4,200. What is the value of the net working capital to
total assets ratio?
55.
A firm has total assets of $310,100 and net fixed assets of $168,500. The
average daily operating costs are $2,980. What is the value of the interval
measure?
56.
A firm has a debt-equity ratio of 0.42. What is the total debt ratio?
57.
A firm has total debt of $4,850 and a debt-equity ratio of 0.57. What is the
value of the total assets?
58.
A firm has sales of $68,400, costs of $42,900, interest paid of $2,100, and
depreciation of $6,500. The tax rate is 34 percent. What is the value of the
cash coverage ratio?
59.
The Bike Shop paid $1,990 in interest and $1,850 in dividends last year. The
times interest earned ratio is 2.2 and the depreciation expense is $520.
What is the value of the cash coverage ratio?
60.
Al's Sport Store has sales of $897,400, costs of goods sold of $628,300,
inventory of $208,400, and accounts receivable of $74,100. How many days,
on average, does it take the firm to sell its inventory assuming that all sales
are on credit?
61.
The Flower Shoppe has accounts receivable of $3,506, inventory of $4,407,
sales of $218,640, and cost of goods sold of $169,290. How many days does
it take the firm to sell its inventory and collect the payment on the sale
assuming that all sales are on credit?
