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kaplan Gb550 quiz 2 (taken on May 16, 2014)




Question;1.Rappaport Corp.'s sales last year were $320,000, and its net income;after taxes was $23,000. What was its profit margin on sales? (Points: 2);6.49%;6.83%;7.19%;7.55%;Question;2. 2.Arshadi Corp.'s sales last year were $52,000, and;its total assets were $22,000. What was its total assets turnover ratio;(TATO)? (Points: 2);2.03;2.13;2.25;2.36;Question;3. 3.Branch Corp.'s total assets at the end of last year;were $315,000 and its net income after taxes was $22,750. What was its;return on total assets? (Points: 2);7.22%;7.58%;7.96%;8.36%;Question;4. 4.Nikko Corp.'s;total common equity at the end of last year was $305,000 and its net income;after taxes was $60,000. What was its ROE?(Points: 2);16.87%;17.75%;18.69%;19.67%;Question;5. 5.Orono Corp.'s sales last year were $435,000, its;operating costs were $362,500, and its interest charges were $12,500. What;was the firm's times interest earned (TIE) ratio? (Points: 2);4.72;4.97;5.23;5.80;Question;6. 6.Which of the following statements is CORRECT?;(Points: 2);The four most important financial;statements provided in the annual report are the balance sheet, income;statement, cash budget, and the statement of stockholders? equity.;The balance sheet gives us a picture of the firm?s;financial position at a point in time.;The income statement gives us a picture;of the firm?s financial position at a point in time.;The statement of cash flows tells us how;much cash the firm has in the form of currency and demand deposits.;Question;7. 7.Which of the following statements is CORRECT?;(Points: 2);The more depreciation a firm;reports, the higher its tax bill, other things held constant.;People sometimes talk about the firm?s;net cash flow, which is shown as the lowest entry on the income statement;hence it is often called "the bottom line.?;Depreciation reduces a firm?s cash;balance, so an increase in depreciation would normally lead to a reduction in;the firm?s net cash flow.;Net cash flow (NCF) is often defined as follows;Net Cash;Flow = Net Income + Depreciation and Amortization Charges.;Question;8. 8.Determining whether a firm's financial position is;improving or deteriorating requires analyzing more than the ratios for a;given year. Trend analysis is one method of measuring changes in a firm's;performance over time. (Points: 2);True;False;Question;9. 9.Which of the following statements is;CORRECT?;(Points: 2);A reduction in inventories held;would have no effect on the current ratio.;An increase in inventories would have no;effect on the current ratio.;If a firm increases its sales while holding its;inventories constant, then, other things held constant, its inventory;turnover ratio will increase.;A reduction in the inventory turnover;ratio will generally lead to an increase in the ROE.;Question;10. 10.Which of the following items is NOT included in;current assets? (Points: 2);Accounts receivable.;Inventory.;Bonds.;Cash.


Paper#49753 | Written in 18-Jul-2015

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