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55. A high price-to-book ratio may indicate which one of the following?
56. A firm has an ROE equal to the industry average, but its price-to-book ratio is below the
industry average. You know that the firm's _________.
57. Use the following cash flow data of Haven Hardware for the year ended December 31,
2012.
What is the net cash provided by operating activities of Haven Hardware?
58. Use the following cash flow data of Haven Hardware for the year ended December 31,
2012.
What is the net cash provided by or used in investing activities of Haven Hardware?
59. Use the following cash flow data of Haven Hardware for the year ended December 31,
2012.
What is the net cash provided by or used in financing activities of Haven Hardware?
60. Use the following cash flow data of Haven Hardware for the year ended December 31,
2012.
What is the net increase or decrease in cash for Haven Hardware for 2012?
61. Use the following cash flow data of Haven Hardware for the year ended December 31,
2012.
What is the cash at the end of 2012 for Haven Hardware?
62. All of the following ratios are related to efficiency except _______.
63. Which of the following would result in a cash inflow under the heading "Cash flow from
investing" in the statement of cash flows?
64. When assessing the sustainability of a firm's cash flows, analysts will prefer to see cash
growth generated from which of the following sources?
65. The ABS company has a capital base of $100 million, an opportunity cost of capital (
k
) of
15%, a return on assets (ROA) of 9%, and a return on equity (ROE) of 18%. What is the economic
value added (EVA) for ABS?
66. Another term for
EVA
is ______.
67. Which of the following transactions will result in a decrease in cash flow from operations?
68. Which of the following transactions will result in a decrease in cash flow from
investments?
69. Which of the following will result in an increase in cash to the firm?
70. The table below shows some data for Key Biscuit Company:
What must have caused the firm's ROE to drop?
71. A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit
purchases. An investment is made via the purchase of a new facility, and equity is issued in the
amount of $300 to pay for the purchase. What is the change in net cash provided by operations?
72. A firm purchases goods on credit worth $100. The same firm pays off $80 in old credit
purchases. An investment is made via the purchase of a new facility, and equity is issued in the
amount of $200 to pay for the purchase. What is the change in net cash provided by financing?
73. A firm purchases goods on credit worth $90. The same firm pays off $100 in old credit
purchases. An investment is made via the purchase of a new facility, and equity is issued in the
amount of $180 to pay for the purchase. What is the change in net cash provided by investments?
74. The net income of the company is $120. Accounts payable increase by $20, depreciation is
$15, and equipment is purchased for $40. If the firm issued $110 in new bonds, what is the total
change in cash for the firm for all activities?
75. The term
quality of earnings
refers to ________.
76. The practice of "selling" large quantities of goods to customers in order to get quarterly
sales up while allowing these customers to return the goods next quarter is termed
_____________.
77. What ratio will definitely increase when a firm increases its annual sales with no
corresponding increase in assets?
78. A firm's leverage ratio is 1.2, interest-burden ratio is .81, and profit margin is .25, and its
asset turnover is 1.1. What is the firm's compound leverage factor?
79. The tax burden of the firm is .4, the interest burden is .65, the return on sales is .05, the
asset turnover is .90, and the leverage ratio is 1.35. What is the ROE of the firm?
80. The tax burden of the firm is .5, the interest burden is .55, the profit margin is .25, the
asset turnover is 1.5, and the leverage ratio is 1.65. What is the ROE of the firm?
81. The major difference between IFRS and GAAP is that U.S. standards are ___________ and
IFRS standards are _________.
82. The quick ratio is a measure of a firm's __________.
83. The firm's leverage ratio is 1.2, interest-burden ratio is .81, and profit margin is .24, and its
asset turnover is 1.25. What is the firm's ROA?
84. A firm has a compound leverage factor greater than 1; this indicates that ______.
