Uptown Men’s Wear has accounts payable of $2,214, inventory of $7,950, cash of $1,263, fixed assets of $8,400, accounts receivable of $3,907, and long-term debt of $4,200. What is the value of the net working capital to total assets ratio?
Subject: Corporate Finance Multiple Choice Quiz ( MCQ ) and Answer
Russell’s Deli has cash of $136, accounts receivable of $87, accounts payable of $215, and inventory of $409. What is the value of the quick ratio?
Last year, which is used as the base year, a firm had cash of $52, accounts receivable of $218, inventory of $509, and net fixed assets of $1,107. This year, the firm has cash of $61, accounts receivable of $198, inventory of $527, and net fixed assets of $1,216. What is the common-base year value of accounts receivable?
A firm has sales of $3,400, net income of $390, total assets of $4,500, and total equity of $2,750. Interest expense is $40. What is the common-size statement value of the interest expense?
A firm has sales of $2,190, net income of $174, net fixed assets of $1,600, and current assets of $720. The firm has $310 in inventory. What is the common-size statement value of inventory?
A firm generated net income of $878. The depreciation expense was $47 and dividends were paid in the amount of $25. Accounts payables decreased by $13, accounts receivables increased by $22, inventory decreased by $14, and net fixed assets decreased by $8. There was no interest expense. What was the net cash flow from operating activity?
During the year, Kitchen Supply increased its accounts receivable by $130, decreased its inventory by $75, and decreased its accounts payable by $40. How did these three accounts affect the firm’s cash flows for the year?
The most acceptable method of evaluating the financial statements of a firm is to compare the firm’s current:
It is easier to evaluate a firm using financial statements when the firm:
Which one of the following statements is correct?
A firm currently has $600 in debt for every $1,000 in equity. Assume the firm uses some of its cash to decrease its debt while maintaining its current equity and net income. Which one of the following will decrease as a result of this action?
Which one of the following accurately describes the three parts of the Du Point identity?
Shareholders probably have the most interest in which one of the following sets of ratios?
The price-sales ratio is especially useful when analyzing firms that have which one of the following?
Tobin’s Q relates the market value of a firm’s assets to which one of the following?
Al’s has a price-earnings ratio of 18.5. Ben’s also has a price-earnings ratio of 18.5. Which one of the following statements must be true if Al’s has a higher PEG ratio than Ben’s?
Which one of the following will decrease if a firm can decrease its operating costs, all else constant?
If a firm produces a twelve percent return on assets and also a twelve percent return on equity, then the firm:
Ratios that measure how efficiently a firm manages its assets and operations to generate net income are referred to as _____ ratios.
Dee’s has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam’s has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88. Both companies have similar operations. Based on this information, Dee’s must be doing which one of the following?
The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level. Assume that both the cost per unit and the selling price per unit also remained constant. This accomplishment will be reflected in the firm’s financial ratios in which one of the following ways?
Jasper United had sales of $21,000 in 2008 and $24,000 in 2009. The firm’s current accounts remained constant. Given this information, which one of the following statements must be true?