Reading 41: Financial Analysis Techniques - LOS d ～ Q16-

答案和详解如下：

16.Earnings before interest and taxes (EBIT) is also known as:

A)   gross profit.

B)   net profit.

C)   operating profit.

D)   earnings before income taxes.

The correct answer was C)

Operating profit = earnings before interest and taxes (EBIT)

Gross profit = net sales – COGS

Net income = earnings after taxes = EAT

17.Given the following information about a firm:

§ Net Sales = $1,000

§ Cost of Goods Sold = $600 

§ Operating Expenses = $200

§ Interest Expenses = $50

§ Tax Rate = 34%

What are the gross and operating profit margins?

A)                           20%            15%

B)                           40%            10%

C)                           40%            20%

D)                           20%            10%

The correct answer was C)

Gross profit margin = ($1000 net sales - $600 COGS)/$1000 net sales = 400/1000 = .4

Operating profit margin = ($1000 net sales - $600 COGS – $200 operating expenses)/$1000 net sales

= $200/$1000

= .2

18.An analyst has collected the following data about a firm:

§ Receivables turnover = 20 times 

§ Inventory turnover = 16 times 

§ Payables turnover = 24 times

What is the cash conversion cycle?

A)   56 days.

B)   20 days.

C)   Not enough information is given.

D)   26 days.

The correct answer was D)

Cash conversion cycle = receivables collection period + inventory processing period – payables payment period.
Receivables collection period = 365/20 = 18
Inventory processing period = 365/16 = 23
Payables payment period = 365/24 = 15
Cash conversion cycle = 18 + 23 – 15 = 26

19.An analyst has collected the following data about a firm:

§ Receivables turnover = 10 times

§ Inventory turnover = 8 times

§ Payables turnover = 12 times

What is the average receivables collection period, the average inventory processing period, and the average payables payment period respectively? (assume 360 days in a year)

A)                            36 days                             45 days           30 days

B)                            45 days                             36 days           30 days

C)                            33 days                             45 days           20 days

D)                            30 days                             30 days           60 days

The correct answer was A)

Receivables collection period = 360/10 = 36 days

Inventory processing period = 360/8 = 45 days

Payables payment period = 360/12 = 30 days

20.Which of the following is NOT a routinely used operating profitability ratio?

A)   Gross profit/net sales.

B)   EBIT/net sales.

C)   Sales/Total Assets

D)   Net income/net sales.

The correct answer was C)

Sales/Total Assets, or Total Asset Turnover is a measure of operating efficiency, not operating profitability.

CBDAC