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Use the following statement of financial position and statement of comprehensive income Use the following statement of financial position and statement of comprehensive income What is the equity multiplier for Bluebird for 2018? A) 1.53 B) 1.56 C) 1.59 D) 1.61 E) 1.64 Use the following statement of financial position and statement of comprehensive income What is the equity multiplier for Bluebird for 2018? A) 1.53 B) 1.56 C) 1.59 D) 1.61 E) 1.64 What is the equity multiplier for Bluebird for 2018?


A) 1.53
B) 1.56
C) 1.59
D) 1.61
E) 1.64

F) B) and D)
G) B) and C)

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Katrina's Fury has $697,400 in sales. The profit margin is 3.4 % and the firm has 12,500 shares of stock outstanding. The market price per share is $33. What is the price-earnings ratio?


A) 15.8
B) 16.2
C) 16.6
D) 17.1
E) 17.4

F) A) and B)
G) C) and D)

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Without making reference to its formula, provide a definition of days' sales in inventory.

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A measure of a company's inventory perfo...

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Ratios that measure how efficiently a firm uses its assets to generate sales are known as:


A) Asset management ratios.
B) Long-term solvency ratios.
C) Short-term solvency ratios.
D) Profitability ratios.
E) Market value ratios.

F) None of the above
G) B) and E)

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The equity multiplier ratio is measured as:


A) Total equity divided by total assets.
B) Total equity plus total debt.
C) Total assets minus total equity, divided by total assets.
D) Total assets plus total equity, divided by total debt.
E) Total assets divided by total equity.

F) C) and D)
G) A) and D)

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What is the debt-equity ratio for 2017? A) 0.48 B) 0.91 C) 1.12 D) 2.15 E) 2.32 What is the debt-equity ratio for 2017? A) 0.48 B) 0.91 C) 1.12 D) 2.15 E) 2.32 What is the debt-equity ratio for 2017?


A) 0.48
B) 0.91
C) 1.12
D) 2.15
E) 2.32

F) C) and E)
G) C) and D)

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Calculate the value of long-term debt given the following information: total debt = $320,000; debt/equity ratio = 0.80; long-term debt ratio = 0.3750.


A) $230,000
B) $235,000
C) $240,000
D) $245,000
E) $250,000

F) A) and B)
G) C) and D)

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Determine the value of cash given the following information: cash ratio = 1.5625; cash equivalents = $500 ; current liabilities = $1,600.


A) $1,500
B) $2,000
C) $2,500
D) $3,000
E) $3,500

F) A) and B)
G) C) and E)

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The inventory turnover ratio is measured as:


A) Total sales minus inventory.
B) Inventory times total sales.
C) Cost of goods sold divided by inventory.
D) Inventory times cost of goods sold.
E) Inventory plus cost of goods sold.

F) B) and D)
G) B) and C)

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Margo's Dress Shoppe had the following values as of the end of last year and the end of this year. Which of the following are sources of cash for the year? Margo's Dress Shoppe had the following values as of the end of last year and the end of this year. Which of the following are sources of cash for the year? A) cash and accounts receivable. B) cash and accounts payable. C) accounts receivable and inventory. D) cash, accounts payable, and inventory. E) accounts payable, accounts receivable, and inventory.


A) cash and accounts receivable.
B) cash and accounts payable.
C) accounts receivable and inventory.
D) cash, accounts payable, and inventory.
E) accounts payable, accounts receivable, and inventory.

F) A) and B)
G) C) and D)

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Return on assets is defined as:


A) Sales divided by net fixed assets.
B) EBIT divided by net fixed assets.
C) Net income divided by net fixed assets.
D) EBIT divided by total assets.
E) Net income divided by total assets.

F) None of the above
G) B) and D)

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Which one of the following statements is correct if a firm has a receivables turnover measure of 10?


A) It takes a firm 10 days to collect payment from its customers.
B) It takes a firm 36.5 days to sell its inventory and collect the payment from the sale.
C) It takes a firm 36.5 days to pay its creditors.
D) The firm has an average collection period of 36.5 days.
E) The firm has ten times more in accounts receivable than it does in cash.

F) B) and C)
G) C) and D)

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A decrease in which one of the following is a source of cash?


A) Common stock.
B) Notes payable.
C) Inventory.
D) Retained earnings.
E) Long-term debt.

F) None of the above
G) A) and E)

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The following statement of financial position and statement of comprehensive income should be used. The following statement of financial position and statement of comprehensive income should be used. What is Woodburn's debt-equity ratio for 2018? A) .39 B) .47 C) .52 D) .55 E) .68 The following statement of financial position and statement of comprehensive income should be used. What is Woodburn's debt-equity ratio for 2018? A) .39 B) .47 C) .52 D) .55 E) .68 What is Woodburn's debt-equity ratio for 2018?


A) .39
B) .47
C) .52
D) .55
E) .68

F) A) and E)
G) A) and D)

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Calculate the return on equity given the following information: common shares outstanding = 300,000; earning per share = $4.00; total assets = $5,000,000; total equity = $3,000,000.


A) 40%
B) 41%
C) 42%
D) 43%
E) 44%

F) A) and C)
G) C) and D)

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The following statement of financial position and statement of comprehensive income should be used. The following statement of financial position and statement of comprehensive income should be used. How many dollars of sales are being generated by every $1 that Woodburn has in total assets($ in thousands) ? (Use 2018 assets) A) $1.01 B) $1.07 C) $1.09 D) $1.12 E) $1.16 The following statement of financial position and statement of comprehensive income should be used. How many dollars of sales are being generated by every $1 that Woodburn has in total assets($ in thousands) ? (Use 2018 assets) A) $1.01 B) $1.07 C) $1.09 D) $1.12 E) $1.16 How many dollars of sales are being generated by every $1 that Woodburn has in total assets($ in thousands) ? (Use 2018 assets)


A) $1.01
B) $1.07
C) $1.09
D) $1.12
E) $1.16

F) A) and B)
G) All of the above

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In the most general sense, which of the following would you expect to be true?


A) If a current asset account and a current liability account both increase by the same amount, there is a net use of funds.
B) If fixed assets decrease by the amount of depreciation for the year, there is a net use of funds.
C) Changes in income and expense accounts do not affect sources and uses of funds.
D) If a liability account increases and an asset account decreases by the same amount, there is a net source of funds.
E) If the common stock outstanding increases there is a use of funds.

F) C) and D)
G) B) and C)

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Square D's has $42,700 in sales and a profit margin of 7.2 %. There are 5,700 shares of stock outstanding at a market price per share of $13.20. What is the price-earnings ratio?


A) 7.12
B) 17.63
C) 24.47
D) 26.08
E) 29.00

F) None of the above
G) B) and E)

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During 2018, the quick ratio: A) Increased. B) Decreased. C) Remained constant. D) Changed, but the direction of the change cannot be determined. E) None of the choices are correct. During 2018, the quick ratio: A) Increased. B) Decreased. C) Remained constant. D) Changed, but the direction of the change cannot be determined. E) None of the choices are correct. During 2018, the quick ratio:


A) Increased.
B) Decreased.
C) Remained constant.
D) Changed, but the direction of the change cannot be determined.
E) None of the choices are correct.

F) All of the above
G) A) and E)

Correct Answer

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Curly Industries generated net income of $980 for the year. The depreciation expense was $120 and dividends paid were $250. The accounts payable decreased by $60, accounts receivable decreased by $20, inventory increased by $80, and net fixed assets increased by $360. What is the net cash flow from operating activity?


A) $940
B) $950
C) $980
D) $1,100
E) $1,140

F) A) and D)
G) C) and E)

Correct Answer

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