Course Hero Logo

Debt ratio versus 33 percent for the industry

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 67 - 71 out of 112 pages.

debt ratio versus 33 percent for the industry). Financial risk could be reduced resulting in thesame return on equity by increasing the net profit margin and reducing debt.Table 3.1Information (2019 values)1. Sales totaled $110,0002. The gross profit margin was 25 percent.3. Inventory turnover was 3.0.4. There are 360 days in the year.5. The average collection period was 65 days.6. The current ratio was 2.40.7. The total asset turnover was 1.13.8. The debt ratio was 53.8 percent.34) Inventory for CEE in 2019 was ________. (See Table 3.1)A) $36,667B) $32,448C) $27,500D) $9,167Answer:C67
Principles of Managerial Finance, 15e(Zutter & Smart)35) Notes payable for CEE in 2019 was ________. (See Table 3.1)A) $113,466B) $52,372C) $41,372D) $10,609Answer:D36) Accounts receivable for CEE in 2019 was ________. (See Table 3.1)A) $14,056B) $19,861C) $14,895D) $18,333Answer:B37) Net fixed assets for CEE in 2019 were ________. (See Table 3.1)A) $45,484B) $48,975C) $54,511D) $69,341Answer:A38) Total assets for CEE in 2019 were ________. (See Table 3.1)A) $45,895B) $124,300C) $ 58,603D) $97,345Answer:D39) Long-term debt for CEE in 2019 was ________. (See Table 3.1)A) $30,763B) $52,372C) $10,608D) $41,372Answer:A68
Principles of Managerial Finance, 15e(Zutter & Smart)Chapter 4Long- and Short-Term Financial Planning4.1The financial planning process1) Strategic financial plans are planned long-term financial actions and the anticipated financialimpact of those actions.Answer:TRUE2) A financial planning process begins with short-term, or operating, plans and budgets that inturn guide the formulation of long-term, or strategic, financial plans.Answer:FALSE3) The key input to the short-term financial planning process is ________.A) the audit reportB) the pro forma balance sheetC) the sales forecastD) the pro forma income statementAnswer:C4) Operating financial plans are planned short-term financial actions and the anticipatedfinancial impact of those actions.Answer:TRUE5) The sales forecast and various forms of operating and financial data are the key outputs ofthe short-run (operating) financial planning.Answer:FALSE6) The financial planning process begins with ________ financial plans that in turn guide theformation of ________ plans and budgets.A) short-term; long-termB) short-term; short-termC) long-term; long-termD) long-term; short-termAnswer:D7) Short-term financial plans and long-term financial plans generally cover periods ranging from________ years and ________ years, respectively.A) one to two; two to tenB) five to ten; ten to twentyC) zero to one; five to tenD) one to ten; ten to fifteenAnswer:A8) The key aspects of a financial planning process are ________.A) cash planning and investment planningB) operations planning and investment planningC) investment planning and profit planningD) cash planning and profit planningAnswer:D69
Principles of Managerial Finance, 15e(Zutter & Smart)9) Pro forma financial statements are used for ________.A) cash budgetingB) preparing financial statementsC) profit planningD) auditingAnswer:C10) The primary purpose in preparing pro forma financial statements is ________.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 112 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Winter
Professor
N/A
Tags
Progressive Tax, Financial Markets, Money market, Zutter

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture