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GB550 unit 2 quiz




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. Vang Corp.'s stock price at the;end of last year was $33.50 and its earnings per share for the year were $2.30.;What was its P/E ratio? (Points: 2);13.84;14.57;15.29;16.06;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. Lindley Corp.'s stock price at;the end of last year was $33.50, and its book value per share was $25.00. What;was its market/book ratio? (Points: 2);1.34;1.41;1.48;1.55;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);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 8. 8. Which of the following items;cannot be found on a firm?s balance sheet under current liabilities?;(Points: 2);Accounts payable.;Short-term notes payable to the bank.;Accrued wages;Cost of;goods sold.;Question 9. 9. Which of the following items is;NOT included in current assets? (Points: 2);Accounts receivable.;Inventory;Bonds;Cash;Question 10. 10. Other things held constant;which of the following actions would increase the amount of cash on a company?s;balance sheet? (Points: 2);The company repurchases common stock.;The company pays a dividend.;The;company issues new common stock.;The company gives customers more time to pay;their bills.


Paper#49754 | Written in 18-Jul-2015

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