FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 14: Capital Budgeting Decisions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Last year Javer Corporation had a net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The corporation's times interest earned was closest to:

A) 10.0
B) 11.0
C) 5.3
D) 14.7

E) All of the above
F) C) and D)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000.The corporation's current ratio is closest to:

A) 1.41
B) 0.59
C) 3.42
D) 0.41

E) A) and C)
F) B) and D)

Correct Answer

verified

A

Question 3

Multiple Choice

Review LaterAdd Note

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500.The market price of common stock at the end of Year 2 was $2.01 per share. The company's price-earnings ratio for Year 2 is closest to:

M.K.Berry is the managing director of CE Ltd.a small,family-owned company which manufactures cutlery.His company belongs to a trade association which publishes a monthly magazine.The latest issue of the magazine contains a very brief article based on the analysis of the accounting statements published by the 40 companies which manufacture this type of product.The article contains the following table: CE Ltd's latest financial statements are as follows: The country in which the company operates has no corporate income tax.No dividends were paid during the year.All sales are on account. Required: a.Calculate each of the ratios listed in the magazine article for this year for CE,and comment briefly on CE Ltd's performance in comparison to the industrial averages. b.Explain why it could be misleading to compare CE Ltd's ratios with those taken from the article.

The gross margin percentage is equal to:

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1.Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. The company's return on equity for Year 2 is closest to:

Norton Inc.could improve its current ratio of 2 by:

When fixed costs are included in the cost of goods sold,the gross margin percentage should increase and decrease with sales volume.

Dilisio Corporation has provided the following data: Required: Compute the inventory turnover for this year:

The Seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8.The corporation's current assets consist of cash,marketable securities,accounts receivable,and inventories.Inventory equals $49,000.Seabury Corporation's current liabilities must be:

Tweedle Corporation's most recent balance sheet and income statement appear below: The times interest earned for Year 2 is closest to:

Smay Corporation has provided the following data: The accounts receivable turnover for this year is closest to:

All other things the same,when a company increases its inventories in anticipation of later higher sales,the accounts receivable turnover ratio for the current period increases.

Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Times interest earned. b.Debt-to-equity ratio.

Abdool Corporation has provided the following financial data: Required: a.What is the company's working capital at the end of Year 2? b.What is the company's current ratio at the end of Year 2? c.What is the company's acid-test (quick)ratio at the end of Year 2? d.What is the company's accounts receivable turnover for Year 2? e.What is the company's average collection period (age of receivables)for Year 2? f.What is the company's inventory turnover for Year 2? g.What is the company's average sale period (turnover in days)for Year 2? h.What is the company's operating cycle for Year 2? i.What is the company's total asset turnover for Year 2?

Klein Corporation has provided the following data: The company's equity multiplier is closest to:

Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's operating cycle for Year 2 is closest to:

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400.The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on total assets for Year 2 is closest to:

Mayfield Corporation has provided the following financial data: The company's acid-test (quick) ratio is closest to:

Straton Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,100.The market price of common stock at the end of Year 2 was $5.56 per share. Required: a.What is the company's net profit margin percentage for Year 2? b.What is the company's gross margin percentage for Year 2? c.What is the company's return on total assets for Year 2? d.What is the company's return on equity for Year 2? e.What is the company's earnings per share for Year 2? f.What is the company's price-earnings ratio for Year 2? g.What is the company's dividend payout ratio for Year 2? h.What is the company's dividend yield ratio for Year 2? i.What is the company's book value per share at the end of Year 2?