CH03AQZV7 - Chapter 03 Quiz A Student Name_ Use the...

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Chapter 03 Quiz A Student Name_________________________ Student ID ____________ Use the following financial statements to answer this quiz. Balance Sheet Income Statement Cash $ 900 Accounts payable $ 1,300 Sales $22,000 Accounts receivable 1,500 Long-term debt 16,500 Cost of goods sold 16,500 Inventory 4,700 Common stock 10,000 Depreciation 4,200 Net fixed assets 33,400 Retained earnings 12,700 Taxes 200 Total assets $40,500 $40,500 Net income $ 1,100 Select the best answer. All answers are rounded. ________ 1. What is the value of the quick ratio? a. 0.40 b. 0.69 c. 1.85 d. 5.46 ________ 2. What is the inventory turnover rate? a. 1.84 b. 2.02 c. 3.51 d. 4.68 ________ 3. What is the amount of the net working capital? a. $900 b. $1,100 c. $5,800 d. $7,100 ________ 4. What is the profit margin? a. 2.72% b. 5.00% c. 5.91% d. 11.00% ________ 5. What is the return on equity? a. 2.72% b. 4.85% c. 8.67% d. 11.00% ________ 6. What is the equity multiplier? a. 1.78 b. 1.84 c. 2.20 d. 4.05 ________ 7. If the accounts payable had a balance of $1,200 last year, then accounts payable is _____ of cash. a. a source b. a use c. neither a source nor a use ________ 8. If the inventory account had a balance of $5,300 last year, then inventory is _____ of cash. a. a source b. a use c. neither a source nor a use ________ 9. What is the P/E ratio if there are 1,000 shares of stock outstanding with a market price of $10.56? a. 9.60 b. 11.62 c. 13.84 d. 20.83 ________ 10. What is the common size ratio of long-term debt? a. 38.21% b. 40.74% c. 43.95% d. 72.69%
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Chapter 03 Quiz A Answers Note: All answers are rounded. 1. c Quick ratio = ($900 + $1,500) ÷ $1,300 = 1.85 2. c Inventory turnover ratio = $16,500 ÷ $4,700 = 3.51 3. c Net working capital = ($900 + $1,500 + $4,700 – $1,300) = $5,800 4. b Profit margin = $1,100 ÷ $22,000 =.05 = 5.00%
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This note was uploaded on 05/29/2010 for the course FIN 325 taught by Professor Staff during the Spring '08 term at San Diego State.

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CH03AQZV7 - Chapter 03 Quiz A Student Name_ Use the...

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