FINMAN1 QUIZ#2 2T SY 1011 ANSWERS

# FINMAN1 QUIZ#2 2T SY 1011 ANSWERS - FINMAN1 QUIZ 2 ANSWERS...

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FINMAN1 QUIZ # 2 ANSWERS 2 ND TERM SY 2010-2011 I. MULTIPLE CHOICE 1. B 2. B (Equipment is a fixed asset which is not part of the quick ratio formula) 3. D 4. D 5. D 6. B 7. B 8. D (Lease expense is neither an interest expense nor an operating expense) 9. D 10. C 11. A 12. A 13. D (An increase in accounts payable will increase the denominator of current ratio which will decrease the result. 14. B (Other expenses such as interest expense and lease expense are not part of the operating expenses which won’t affect the operating profit margin. 15. D II. IDENTIFICATION 16. FINANCIAL RATIOS 17. DEBT RATIO 18. TOTAL ASSET TURNOVER 19. OPERATING PROFIT MARGIN 20. RETURN ON ASSETS III. PROBLEMS 21. P1,200,000 22. P480,000 23. P3,000,000 24. P800,000 25. 5.0 26. 20.28 DAYS 27. P600,000 28. P920,000 29. P250,000 30. 20%

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SOLUTIONS: 21. Total Asset Turnover = Sales / Total Assets 2.50 = 5,000,000 / Total Assets Total Assets = P2,000,000 Ratio of Current Assets to Total Assets = Current Assets / Total Assets
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