Reading 41: Financial Analysis Techniques - LOS d ～ Q26- border, company, balance, following, class

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26.Given the following income statement and balance sheet for a company:

Balance Sheet
Assets	Year 2003		Year 2004
Cash	500		450
Accounts Receivable	600		660
Inventory	500		550
Total CA	1300		1660
Plant, prop. equip	1000		1250
Total Assets	2600		2910
Liabilities
Accounts Payable	500		550
Long term debt	700		1102
Total liabilities	1200		1652
Equity
Common Stock	400		538
Retained Earnings	1000		720
Total Liabilities & Equity	2600		2910
Income Statement
Sales		3000
Cost of Goods Sold		(1000)
Gross Profit		2000
SG&A		500
Interest Expense		151
EBT		1349
Taxes (30%)		405
Net Income		944

What is the quick ratio for 2004?

A)   2.018.

B)   0.331.

C)   1.961.

D)   3.018.

 

27.Given the following income statement and balance sheet for a company:

Balance Sheet
Assets	Year 2003		Year 2004
Cash	500		450
Accounts Receivable	600		660
Inventory	500		550
Total CA	1600		1660
Plant, prop. equip	1000		1250
Total Assets	2600		2910
Liabilities
Accounts Payable	500		550
Long term debt	700		1002
Total liabilities	1200		1552
Equity
Common Stock	400		538
Retained Earnings	1000		820
Total Liabilities & Equity	2600		2910
Income Statement
Sales		3000
Cost of Goods Sold		(1000)
Gross Profit		2000
SG&A		(500)
Interest Expense		(151)
EBT		1349
Taxes (30%)		(405)
Net Income		944

What is the current ratio for 2004?

A)   0.331.

B)   3.018.

C)   1.961.

D)   2.018.

cfaedu

答案和详解如下：

26.Given the following income statement and balance sheet for a company:

Balance Sheet
Assets	Year 2003		Year 2004
Cash	500		450
Accounts Receivable	600		660
Inventory	500		550
Total CA	1300		1660
Plant, prop. equip	1000		1250
Total Assets	2600		2910
Liabilities
Accounts Payable	500		550
Long term debt	700		1102
Total liabilities	1200		1652
Equity
Common Stock	400		538
Retained Earnings	1000		720
Total Liabilities & Equity	2600		2910
Income Statement
Sales		3000
Cost of Goods Sold		(1000)
Gross Profit		2000
SG&A		500
Interest Expense		151
EBT		1349
Taxes (30%)		405
Net Income		944

What is the quick ratio for 2004?

A)   2.018.

B)   0.331.

C)   1.961.

D)   3.018.

The correct answer was A)

Quick ratio = (cash + mkt sec. + receivables)/CL = (450 + 0 + 660)/550 = 2.018

 

27.Given the following income statement and balance sheet for a company:

Balance Sheet
Assets	Year 2003		Year 2004
Cash	500		450
Accounts Receivable	600		660
Inventory	500		550
Total CA	1600		1660
Plant, prop. equip	1000		1250
Total Assets	2600		2910
Liabilities
Accounts Payable	500		550
Long term debt	700		1002
Total liabilities	1200		1552
Equity
Common Stock	400		538
Retained Earnings	1000		820
Total Liabilities & Equity	2600		2910
Income Statement
Sales		3000
Cost of Goods Sold		(1000)
Gross Profit		2000
SG&A		(500)
Interest Expense		(151)
EBT		1349
Taxes (30%)		(405)
Net Income		944

What is the current ratio for 2004?

A)   0.331.

B)   3.018.

C)   1.961.

D)   2.018.

The correct answer was B)

Current ratio = CA/CL = 1,660/550 = 3.018

mcdullpong

  Thanks

shuru1207

thnx

sir_2005

AB

zoomair

thanks