+1835 731 5494 Email: instantessays65@gmail.com

Account Quiz

$12.99

1. Which of the following measures is most useful in analyzing a company’s ability to control expenses? A) Debt-to-assets ratio. B) Asset turnover ratio. C) Net profit margin ratio. D) Pro forma ratio. 2.. A company has an asset turnover ratio of 0.82. Which of the following statements is true? A) The company generates $0.18 of net income for every $1 in reported assets. B) The company buys assets more frequently than it sells them. C) The company generates $0.82 of sales revenue for every $1 in reported assets. D) This is an improvement over the previous period when the asset turnover rate was 0.88. 3. Company A has a debt-to-assets ratio of 0.73 while Company B has a debt-to-assets ratio of 0.45. Which of the following is true? A) Stockholders own a smaller proportion of Company A than Company B. B) Company A must make less profit than Company B. C) Creditors own a smaller proportion of Company A than Company B. D) Company A must have fewer assets than Company B. 4. If a company’s total liabilities decrease, its: A) net profit margin will increase. B) asset turnover ratio will increase. C) debt-to-assets ratio will decrease. D) debt-to-assets ratio will remain unchanged. 5. On January 1, 2009, a company has assets of $18 billion and stockholders’ equity of $8 billion. On January 1, 2010, the same company has assets of $20 billion and stockholders’ equity of $13 billion. During 2009, the company had total sales revenue of $900 million and total expenses of $700 million. The company’s debt-to-assets ratio on January 1, 2010 is: A) 0.55 B) 0.50 C) 0.35 D) 0.01 6. On January 1, 2009, a company has assets of $16 billion and stockholders’ equity of $8 billion. On January 1, 2010, the same company has assets of $20 billion and stockholders’ equity of $9 billion. During 2009, the company had total sales revenue of $900 million and total expenses of $700 million. The company’s asset turnover ratio for 2009 is: A) 0.25 B) 0.05 C) 0.045 D) 0.01 7. On January 1, 2009, a company has assets of $15 billion and stockholders’ equity of $12 billion. On January 1, 2010, the same company has assets of $16 billion and stockholders’ equity of $13 billion. During 2009, the company had total sales revenue of $700 million and total expenses of $380 million. If the company doesn’t have other sources of revenue, its net profit margin during 2009 is: A) 0.012 B) 0.013 C) 0.223 D) 0.457 8. All other things equal, in which of the following cases would an analyst rank the company most favorably? A) The company has the highest debt-to-assets ratio in the industry as well as the highest profit margin and asset turnover ratio. B) The company has the highest debt-to-assets ratio in the industry as well as the highest profit margin while its asset turnover ratio is the lowest. C) The company has the lowest debt-to-assets ratio in the industry as well as the lowest asset turnover ratio while its profit margin is the highest. D) The company has the lowest debt-to-assets ratio in the industry as well as the highest profit margin and asset turnover ratio. 9. Using information in the income statement and balance sheets below, determine the missing amounts. Calculate the debt-to-assets ratio as of December 31, 2009. Calculate the asset turnover ratio and the net profit margin ratio for the year 2009. CINNAMON AND SPICE, INC. Income Statement For the Year Ended December 31, 2009 (in thousands of dollars) Revenues Sales Revenue $ 381,020 Expenses Cost of Goods Sold 214,900 Advertising and Promotion Expenses 12,200 Other Selling and Administrative Expenses ? Interest Expense 25,600 Income Tax Expense 17,700 Other Expenses 33,700 Total Expenses 332,600 Net Income $ ? CINNAMON AND SPICE, INC Balance Sheets At December 31, 2009 and 2008 (in thousands of dollars) 12/31/09 12/31/08 Assets Cash $

Reviews

There are no reviews yet.

Be the first to review “Account Quiz”

Your email address will not be published. Required fields are marked *